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Tenants vie for top retail space
In the market for premium shopping space in HCM City, it is not customers but landlords who dictate terms, with the former scrambling for the limited space available at prime locations.
Some high-street buildings in District 1 and District 3 are even choosy about which brands they should let space to, and usually opt for those with an international reputation.
They want tenants living up to their own self-image as premium shopping space, even if that means having some space vacant, Sai Gon Tiep Thi reports.
"Some local brands are willing to pay more and agree to long-term contracts but are still rejected," said Dang Quynh Doan, Managing Director of local brand Viet Thy Fashion which has been struggling to rent space at certain upmarket commercial centres.
While it has been able to get into second-tier places like Tax Market and Zen Plaza, malls like Opera View, Diamond Plaza and Parkson remain out of reach.
Opera View, just across from the Opera House, has windows dominated by Louis Vuitton, while Diamond Plaza houses Calvin Klein, Christian Dior, Lancome, Omega and Clarins.
"Since we’ve got Louis Vuitton as a long-term tenant, we [want to] rent the remaining space only to world-famous brands, or to no one at all," said Le Van Canh, managing director of Artex Sai Gon, which owns and operates Opera View.
"That’s the way to keep our shoppers and, of course, tenants," he said.
Waiting lists
Even when retailers meet the rigid standards of these centres, they often do not get space immediately, but have to go on to long waiting lists since Tax Market, Zen Plaza, Diamond Plaza and Parkson have rented out all their space.
Rent is not negotiation since tenants only find out how much they have to pay after they are selected.
Rents at these malls now range from US$50 to 200 a square metre, depending on the product and floor – jewellery, watches and cosmetics are at the top of the heap, followed by fashion items.
VietNamNet, VietNamNews
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