Jones Lang LaSalle scores landmark CBD deal

It will be the first new Grade A office development to launch in Hoan Kiem inner district since 2009.

Located within the central business district near major businesses, government agencies and facilities, the CornerStone Building offers a total net floor area of 25,893 square metres of new office space, and large floor plates boasting 2,000sqm of extra amenities and services.

This was the first property management contract for Jones Lang La Salle in Hanoi and its managing director, David Lyon said: “The CornerStone Building in the heart of Hanoi is an exceptional product in the highly sought after Grade A office segment.”

He added: “We are seeing an increase in demand for Grade A office space, with companies upgrading and relocating on the back of competitive rents and incentives from the property owners. With 150,000sqm of office space to be added in the second half of 2012, rents are expected to soften further. However, Grade A office buildings in the CBD will remain resilient and are expected to report healthy occupancy levels and high asking rents.”

Cornerstone is expected to open early next year at a total investment of around $50 million. Its rent is currently ranging from $29-33, exclusive of service charges and value-added tax.

Cornerstone will become the only Grade A office building coming on Hoan Kiem district over the next few years as prime land for development of high-class office in the area at the moment was limited.
The latest Grade A office in Hoan Kiem district is BIDV Tower which was opened in 2009.

Due to increasing supply and tough economic environment, CBD office market in Hanoi posted a slight increase in vacancy and reduction in asking rents by 1 per cent in the first half of the year.