Lim Tower, which was inaugurated in July. — VNS Photo

HCM CITY (Biz Hub) — Lim Tower, the largest new Grade A building in HCM City since the Bixtexco Financial Tower, has already achieved an 80 per cent occupancy.

However, in general, the opportunity to have their spaces leased is tightening for developers of commercial property in the two major cities of Ha Noi and HCM City, says CBRE, the real estate services company.

Company officials said at a press briefing held on Tuesday that next year will see limited supply of Grade A and B office space in both the central business districts (CBDs) and decentralized districts.

A strategic approach, timing and early planning is key "to achieve a workable solution" a company statement said, adding that major occupiers are now planning and negotiating for expiries in mid to late 2014.

According to a CBRE report, in the HCM City's CBD, only eight buildings (A and B Grade) can provide over 1,000 sq.m of contiguous space today.

In 2013, only 2 new Grade A buildings have been officially completed, the most high profile of them being the "Lim Tower" on Ton Duc Thang Street, District 1.

Developed by Mai Thanh Services Holding Company and exclusively marketed by CBRE, the building has been developed to specifically cater for the needs of the Grade A office market with a focus on service sector occupiers like Banking, Insurance and Legal Consulting and Consumer Goods.

It expects full occupancy by the first quarter of next year.

Besides, only 4 buildings (A and B Grade) combined in the HCM City's CBD have a floor plate over 1,000 sq.m.

This means, very limited options for multinational corporations looking for international standard larger commercial buildings, a CBRE statement said.

It said that in HCM City, 50 per cent of the 175 new small-medium sized buildings in key and fringe CBD Districts such as 1, 3, Tan Binh and Phu Nhuan are being built by State-owned Enterprises and 50 per cent are for owner occupation,

Asking rents in mature buildings with quality asset management services will maintain good performance even though there will be additional new supply in the next few quarters as demand for high quality and good location office space continues, Ohan said.

Flexible leasing terms and high quality service are still key to attracting or retaining tenants, he added. — VNS