Talent challenges reshaping office market strategies: Savills

Office selection in Hanoi is still driven by pricing and location, but increasingly, location is being evaluated based on its ability to support workforce needs, connectivity, and long-term business growth, write Savills analysts.

As competition for talent continues to intensify, businesses are rethinking their office location strategies. While office location decisions were traditionally driven by customer accessibility, occupancy costs and capital considerations, tightening labor markets are reshaping occupier priorities.

According to Savills World Research's Global Occupier Strategy Report published in June 2026, 74% of businesses globally are experiencing difficulties recruiting suitably skilled talent. As a result, talent retention has become an increasingly important priority, influencing how organizations evaluate and select workplace locations. Alongside location and rental costs, access to labor and factors that contribute to employees' quality of life are playing a greater role in office decision-making.

The report also highlights that housing costs in many major economic centers are increasing faster than incomes. As a result, affordability, commuting times and quality of life are playing a larger role in where highly skilled workers choose to live and work.

In response, businesses are placing greater emphasis on office locations that offer convenient transport connections, reasonable commuting times and access to amenities that support employees' day-to-day needs.

This shift is also expanding the definition of a sustainable workplace.

Increasingly, occupiers are looking beyond the office and towards locations that are connected to transport infrastructure and surrounding amenities, supporting daily employee wellbeing. At the same time, mixed-use districts that integrate living, working and lifestyle amenities are attracting increasing interest from occupiers.

According to Savills, locations that combine strong connectivity, a high quality of life and access to talent are becoming increasingly important considerations in office expansion and relocation strategies.

Hanoi reflects a talent-driven shift in office demand

These global trends are becoming increasingly visible in Hanoi, where occupiers are placing greater emphasis on workplace quality, accessibility and employee experience. At the same time, the city continues to see a significant pipeline of high-quality office developments.

In Hanoi, this trend is emerging alongside a continued pipeline of high-quality office developments. Savills forecasts that by 2028, 403,000 m2 of new office supply will be delivered across 20 projects.

Grade A developments are expected to account for the majority of this pipeline, concentrated primarily in the Western and Inner-City submarkets, while new supply in the CBD remain limited. This reflects an ongoing shift towards higher-quality office stock across a broader range of locations.

According to William Gramond, director of commercial leasing at Savills Hanoi, pricing and location remain the key considerations for occupiers in Hanoi when selecting office space.

"However, the definition of a good location is evolving. Increasingly, businesses are assessing locations through the lens of talent attraction and retention, with access to skilled labor becoming a critical factor in the decision-making process," he added.

This trend is particularly evident as Hanoi's office market continues to expand beyond the traditional CBD. The growing pipeline of high-quality developments in Western Hanoi and Tay Ho Tay, including projects such as IFC Hanoi, Oriental Square and Westlake Square Hanoi, is providing occupiers with more options that combine competitive occupancy costs, modern specifications and improved access to residential catchments where much of the city's talent pool is concentrated.

Ultimately, office selection in Hanoi is still driven by pricing and location, but increasingly, location is being evaluated based on its ability to support workforce needs, connectivity, and long-term business growth.