Office Space For Lease In District 7 Ho Chi Minh: What Does The Office Building Management Fee Cost Include?

Wednesday, April 14, 2021

What Does The Office Building Management Fee Cost Include?

Office building management fee is the amount that the customer pays to the building management department to maintain reception services, to ensure that the building is clean, secure, and in good working order. Building management fees also have other names such as office management fees, building management fees, building service fees, …

1. Why do businesses have to pay a building management fee?

1. Why do businesses have to pay a building management fee?
Office building management fee is a fee applied by the investor to maintain the space where you work in the best condition, is a fee used to pay for the renovation activities of the building’s architecture. like the interior.
In addition, the service fee is also used for periodic maintenance as well as to upgrade electrical equipment inside the house, specifically:

– Electrical system, air conditioning system
– Lifts, freight lifts, …
– CCTV camera system
– Some buildings have free electricity and air conditioning during working hours.

In addition, management fees are also used to maintain the building’s public services such as:

– Reception service and guide your company’s business partners in the main lobby of the building.
– Office cleaning services, toilets, periodical spraying of insecticides.
– Security services, parking, …
– Hire general management teams to handle incidents when necessary.
– Some other public services such as drinking water at pantry counter, drinking water …
– Some buildings are free after hours (after 6 PM)

Therefore, if businesses want to feel secure when renting an office in the building without having to worry about anything, they have to pay management fees. Which buildings have a high management fee, the associated utilities will be commensurate with that fee.

2. Each area will have different management fees:

Office buildings for rent in District 1 always have management fees higher than other districts from 4 – 8 USD / m2 or more, however, these buildings always ensure tenants with the most high-end amenities such as: High-speed elevators, central automatic cooling system, spacious modern parking garage, 24/24 CCTV camera to maintain the best security for corporate assets … Especially the management fee in District 1 is that it will include the cost of electricity for using air conditioning per month and also the overtime fee or parking fee. Therefore, although the rental price is quite high, but the office buildings for lease in District 1 are always preferred by businesses.
In the area of District 3, the maximum office management service fee is 5 USD / m2 and if the building is 2 USD / m2, the remaining districts have a management fee of 3 – 5.5 USD / m2. Particularly, office buildings in District 2 and District 7 only apply a management fee of 3 – 5 USD / m2, in order to attract investors who are looking to open more branches or newly established businesses.

3. Management fee depends on building class:

Currently, Grade A office buildings always have a relatively high management fee of 5 – 8 USD / m2 because most of these buildings are newly put into operation and mainly concentrated in District 1. Meanwhile, Grade B office buildings in other districts have a management fee of 3 – 6 USD / m2. In contrast, Grade C buildings located in central areas or offices in locations with inconvenient traffic often apply a relatively low management fee, ranging from only 1 – 3 USD / m2.

For Foreign companies that want to start or expand businesses and look for an office in Vietnam: