WORKPLACE STRATEGY - CBRE Vietnam Tenants...Dec 15, 2014  · WORKPLACE STRATEGY Presented by Greg...

WORKPLACE STRATEGY

Presented by Greg Ohan, Director of Office Services, CBRE Vietnam

15 DEC 2014

2 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

AGENDA

1. 360 DEGREE WORKPLACE STRATEGY

-TRENDS AND DRIVERS

2. GOING GREEN

- ENTER GREEN LEASES

3. VIETNAM OFFICE MARKET OVERVIEW

& OUTLOOK

- IMPLICATIONS FOR OCCUPIERS

1 360°

WORKPLACE STRATEGY

4 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

The World is Changing.

CBRE | Workplace Strategy 4

5 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

ENRICHING THE OCCUPIER EXPERIENCES

6 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

ENRICHING THE OCCUPIER EXPERIENCES

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EVOLUTION

Maximize the opportunities for

INFORMATION EXCHANGE

EVOLUTION OF THE MODERN WORKPLACE

8 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

EVOLUTION OF THE MODERN WORKPLACE FROM PRESENCE TO PERFORMANCE

WORKPLACE EVOLUTION

55% of

working time 45% of working time

PEOPLE PEOPLE

SPACE TECHNOLOGY TECH

9 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Experience across all sectors

CBRE’S RECENT REGIONAL EXPERIENCE

A selection of clients supported by members of our regional team in Asia

Pacific for similar workplace strategy consulting services with CBRE and

before joining CBRE

10 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

CBRE’S RECENT REGIONAL EXPERIENCE

CBRE new office in Singapore

11 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

CBRE’S RECENT REGIONAL EXPERIENCE

CBRE new office in Singapore

12 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

CBRE’S RECENT REGIONAL EXPERIENCE

CBRE office in Tokyo

2 GOING GREEN

14 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

ENTER A GREEN LEASE

“A green lease is a standard form lease with additional clauses included which provide for the management and improvement of the Environmental Performance of a building by both owner and occupier. Such a document is legally binding and its provisions remain in place for the duration of the term”. - UK Better Buildings Partnership

15 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

20 years ago, the concept of sustainability in commercial real estate didn’t really exist.

In 1948, work completed on the Commonwealth Building in Portland, Oregon.

• The world’s first sealed, fully mechanically ventilated building

Heralded a paradigm shift in the way we design and operate buildings.

More energy intensive buildings – but energy was cheap

Increased environmental footprint (real estate responsible for 40% of GHG emissions related to burning of fossil fuels

SUSTAINABILITY – THE NEW IMPERATIVE FOR REAL ESTATE

We literally went to work and shut

ourselves off from the natural world.

16 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Sets clear environmental expectations for both parties from the outset

Supports company sustainability strategies and goals

• GHG emission data for reporting

• Maintaining ISO 14001 certification for facilities

• Maintaining green building ratings/certifications and performance

Motivations and benefits

WHY GREEN LEASE

17 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Engages owner and tenant to partner to reduce consumption and conserve

resources (Energy, Water, Waste)

Ensures landlord/tenant transparency and cooperation for green fit out

requirements (and BTS)

• Potentially leads to higher level of certification for less

Improved indoor environment and potentially increased workforce health

and productivity

Motivations and benefits

WHY GREEN LEASE

18 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Regulatory requirement in France (although basic stipulation)

Becoming more common in mature markets (e.g. Australia)

Sustainability leaders incorporating in strategy (e.g. Marks and Spencer, UK)

GREEN LEASES – THE NEW FRONTIER

19 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Very early days in Asia but signs that will change

• Some successful examples (e.g. Lend Lease in

Singapore)

• A number of large MNC occupiers are now pursuing

green lease strategies

• Singapore BCA just released Office and Retail

Green Lease Schedules for 2014.

• Hong Kong Green Building Council working on

Green Lease guidance

• GRESB is asking for it

GREEN LEASES – THE NEW FRONTIER

20 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

LEED CERTIFIED OFFICE BUILDINGS ACROSS ASIA New and Existing – Driven by Investor and Tenant Demand

3 OFFICE MARKET

OVERVIEW & FORECAST

22 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

0% 10% 20% 30% 40% 50%0%10%20%30%40%50%$0$5$10$15$20$25$30$35

Rent Stable, Vacancy Down

OFFICE

Source: CBRE Vietnam, YTD 2014.

AVERAGE ASKING RENT

(US$/sm/month)

VACANCY RATE

(%)

2014

Q4

Q3

Q2

Q1

2013

Q4

Q3

Q2

Q1

2012

Q4

Q3

Q2

Q1

2011

Q4

Q3

Q2

Q1

GRADE B GRADE A GRADE B GRADE A

$0 $5 $10 $15 $20 $25 $30 $35

2014

Q4

Q3

Q2

Q1

2013

Q4

Q3

Q2

Q1

2012

Q4

Q3

Q2

Q1

2011

Q4

Q3

Q2

Q1

23 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

0

10,000

20,000

30,000

40,000

50,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014

NLA

(sm

)

Grade A Grade B

Very Restricted New Supply -> Limited Leasing Options

OFFICE

Source: CBRE Vietnam, YTD 2014.

Net absorption per

quarter 3-year average

Grade A & B Net Absorption, Q3 2014

24 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Tenant Categories

OFFICE

Source: CBRE Vietnam, YTD 2014.

Number is calculated based on CBRE’s enquiries only

By Industry, YTD 2014 By Nationality, YTD 2014

By Transaction Types, 2012 – YTD 2014

5%

30%

25%

7%

11%

39%

81%

45%

22%

7%

14%

14%

0% 20% 40% 60% 80% 100%

2012

2013

YTD 2014New letting

Expansion

Relocation

Renewal

19%

13%

5%

12% 12%

39%

Banking/ Finance/ Insurance

Phamarceutical/chemicals/ comestic

Sourcing/ Outsourcing

Technology/Electronic/IT

Manufacturing

Other

29%

25% 8%

6%

6%

26%

Europe

US

Vietnam

Germany

Korea

Other

25 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

-10%

-5%

0%

5%

10%

15%

20%

Ma

nila

Sin

ga

po

re

Ho

Chi M

inh C

ity

Ne

w D

elh

i

Kua

la L

um

pur

Taip

ei

Seo

ul

Auckla

nd

Ban

gkok

Sha

ngh

ai

Gua

ngzh

ou

Beiji

ng

Sydn

ey

To

kyo

Ho

ng

Kon

g

Me

lbou

rne

Hano

i

Mu

mb

ai

Brisb

an

e

Rental Growth, H1 2014 Forecast Rental Growth, 2014

APAC Rental Growth

OFFICE

(*) Forecasted at the end of 2013

Source: CBRE Research, August 2014.

Better than expected In line with expectations Lagging behind expectations

*

26 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Floor available for sale / long term lease

OFFICE

Address: 561A Dien Bien Phu St, Ward 25, Binh Thanh Dist.

GFA: 37,434 sm

Typical floor plate: 1,592 sm

Expected completion date: Q1 2015

Asking Price: 1,500 US$/sm/term

Term: until 2058

Sub-lease right: yes SSG TOWER

SAIGON ARIPORT PLAZA

Address: 1 Bach Dang, Ward 2, Tan Binh District.

GFA: 18,820 sm

Typical floor plate: 722 sm

Completion: Q2 2013

Average asking Price: 1,750 US$/sm/term

Term: until 2059

Sub-lease right: yes

Address: 72 Le Thanh Ton, Dist 1.

Typical floor plate: 4,460 sm GFA

Average asking Price: TBC

Term: until 2058

Sub-lease right: yes

ViINCOM CENTER

27 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Future Supply

OFFICE

SSG TOWER

561A Dien Bien Phu St, Ward 25,

Binh Thanh.

GFA: 37,434 sm

Estimated completion: Q3/2015

VIETCOMBANK TOWER

5 Melinh Square, D1

GFA: 77,000 sm

Expected completion: May/2015

VIETTEL OFFICE & TRADE

CENTER

285 Cach Mang Thang Tam, D10

GFA: 65,971 sm

Estimated completion: Q1/2015

LIM TOWER 2

158 Vo Van Tan, D3

GFA: 20,467 sm

Estimated completion:

May/2015

28 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

Outlook 2015

OFFICE

Average rent stable in Q1 & Q2 and very likely will be more

competitive in new office supply coming online Q1 & Q2 2015

Against this context, the vacancy rate will rise slightly.

Expansion and new entrants are anticipated to drive office market in 2015 given

improving market conditions and changes in regulatory environment. Active sectors

include Insurance, Sourcing, IT/Technology

Limited new supply CBD supply from large scale, mixed use projects

and from those projects developed partly for owner- occupation

29 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

2 MORE 4 BEST

VINCOM CENTER DONG KHOI Impressive

30 CBRE | OFFICE SERVICES | WORKPLACE STRATEGY

4 Best 2 More

The First prize

of

National Energy

Efficiency

Winner 2011

The best

location

The

biggest

shopping

mall

The largest

floor plate

Greener –

More energetic More

convenient

VINCOM CENTER DONG KHOI

For enquiry, please call 0936 299 899

THANK YOU

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QUESTIONS & ANSWERS