Cushman & Wakefield Vietnam reports that as offices worldwide embrace the work-from-home (WFH) approach due to the global COVID-19 pandemic, Vietnam’s corporate real estate market was quick to reopen and return to the real estate status quo. And because the Vietnamese government has been effective in keeping the country’s exposure to COVID-19 low, most companies in Vietnam did not look at a ‘new normal’, with people from working from home and companies using a hub-and-spoke model for their office needs.
Cushman & Wakefield notes that according to its insights and research, Vietnamese companies are now looking at a corporate real estate (CRE) strategy that involves a conscious shift of when, how, and where people use the office. Instead of a large office in a central downtown location, companies are starting to research how they can develop their office portfolios using a hub-and spoke model.
In the future, centralized downtown headquarters or ‘hubs’ will become smaller, but will remain necessary for management interaction, meetings, sales and vendor pitches, and talent recruitment.
The ‘spokes’ will be either flexible co-working office spaces, or dedicated building and spaces in areas that are outside the “hub” and closer to the workforce. Due to the global COVID-19 pandemic, many people began to Work-From-Home (WFH) but this practice will also evolve to allow people to also Work-From-Anywhere (WFA).
WFA will see companies develop CRE strategies that allow employees meeting to occur at co-work spaces, coffee shops or restaurants, whenever employees want or need to meet.
Central downtown office will still play a critical role in CRE strategy, as they help to create brand awareness and social interaction, which van lead to business development and motivate productivity and can be an important factor corporate culture.
The evolving shift to WFA and WFH will, in all likelihood, have financial benefits to companies that embrace these models since costly downtown office spaces can be reduced along with employee transportation costs and other expenses. Driving this new model will be multinational companies, particularly large firms who have created large office spaces in Hanoi, Ho Chi Minh City and other large cities in the country.
For employees, the new ‘normal’ of WFH and WFA promises a future with more personal time as they save daily commuting and the freedom to work ‘their way’ while still meeting business goals and key performance indicators.