In order to cut down on expenses in the context of economic downturn, businesses tend to leave high-rise buildings and set up offices at apartment blocks, designed for accommodation. Meanwhile, office project developers are using the offices as guest houses.

Real estate consultancy firms have reported the sharp increase in the space of unoccupied offices for rent, as many office buildings have become operational.

About ten business offices have been closed just on a short stretch of Nguyen Thi Dinh Street. And the banderoles with ad pieces about offices for rent still have been hung over the buildings for many days, since the owners have not found clients yet.

BT, a real estate firm, which previously set its office at a villa on Nguyen Thi Dinh Road, has decided to relocate the office to cut down expenses. The new destination of the firm would be the house of the firm’s director in My Dinh residential quarter. This would allow the firm to save 50 million dong a month, because it would not have to pay the rental for the office premises and other kinds of expenses, including electricity and water and security solutions.

In the golden age, the owner of the firm decided to rent a whole villa in Trung Hoa Nhan Chinh area. He believed that the firm’s office needs to be located on advantageous positions and well decorated in order to polish its image.

However, as the real estate market has been gloomy for the last few years, BT had to apply all possible measures to cut down expenses. After cutting the workforce, moving to another place to reduce the rentals is the next thing BT has to do.

The boss admitted that it would not be inconvenient for clients to go to My Dinh area to make transactions. However, this proves to be the best solution for now, because this allows him to ease the financial burden. 

His house with the area of 100 square meters would be large enough for 10 employees. Meanwhile, he would not have to pay for security guards, and he would not have to pay for petrol to drive his car to the previous office.

A company, which previously set its office in Yen Hoa area, has also decided to leave the office, just after one year since the day it moved into the office, even though the office leasing contract would expire only in four years. 

The company has to pay a heavy price for the early leave. In 2011, it had to spend one billion dong on re-designing the villa, re-decorate and install water and electricity systems. Besides, it would also have to pay for breaking the contract. However, the boss has no other choice than relocating the office to his house in the Dai Kim new urban area.

Thu Huong, who works for a media company in Dong Da district, complained that her office would be relocated to the My Dinh II residential quarter. This means that she would have to travel five kilometers more to reach the office and pay more for motorbike fuel. 

Meanwhile, in the new urban area there are few restaurants and street rice shops, which means that she would have to pay more for meals. Besides, she would not be able to pick up her child from his school.

Meanwhile, real estate developers have been worried stiff because they cannot find clients to rent their offices. As a result, office buildings have turned into mini apartment blocks and guest houses.

Khang, the owner of the 7 storey building on Trieu Khuc Street, once dreamed of earning 100 million dong a month from leasing the building. However, instead of making big money, he now has to try to collect “small change” by turning the building into a guest house which allows him to earn 500,000 dong from every guest a night.

Source: VNN