Robert Johnston, national head of Cushman & Wakefield Vietnam said that these tenants were taking advantage of the favorable market conditions and the improved build specification from the new supply in the market.

A recent example of this trend includes the relocation of the Hanoi Representative office of Merck Sharp & Dohme Asia Ltd. (“MSD”), from Asia Tower in Nha Tho Street, Hoan Kiem District to Keangnam Landmark Tower at Pham Hung Boulevard, Cau Giay District on the west of Hanoi.

MSD’s new Hanoi office will be officially put into operation in January 2013 after three months of renovation.

Pharma firms are seeking offices with close proximity to hospitals, hotels, and the national administrative center along with amenities for employees.

Keangnam accommodated their requirement for 1,000 square metre on one floor plate with competitive commercial terms.

Stephen Morris, MSD Real Estate Portfolio manager – Asia Pacific commented: “This relocation was vital to MSD to support their growth objectives in Hanoi; Keangnam is an excellent building offering high-quality office space in a new strategic location. Many thanks for Cushman & Wakefield for their support through the negotiation process.”

According to Cushman & Wakefield, tenants will negotiate hard to achieve better lease conditions and terms, while established, well-respected landlords will retain their long-standing tenants with rental reductions upon lease renewals.

Aging buildings with poor building management will risk losing their tenants due to the attractive relocation options in the market.