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Management Fees (Service Fees) Of Office For Lease

Management Fees (Service Fees) Of Office For Lease

Management fees (Service fees) – or in some places also known as Management Fee, is usually applied per m2 of office floor space for lease. This fee usually fluctuates at the lowest level from 2 USD/m2 or more, in some high-class office buildings, this fee can be up to 8 USD/m2 and significantly affects the cost of office rental.

What services do the management fees (service fees) include?

What services do the management fees (service fees) include?
Basically, the service fee is used to pay for the renovation activities to renew the building’s architecture as well as the interior. At the same time, the service fee is also used for periodic maintenance as well as upgrading the electrical equipment inside the house, namely the electrical system, central air conditioning system, elevators, freight elevators. , CCTV camera system…

In addition, the service fee is also used to maintain the building’s public services such as:

  • Reception service and concierge service at the main lobby of the building.
  • Security services, parking, building management support to handle incidents when necessary.
  • Cleaning service of office, toilet, spraying insecticide periodically.
  • Some buildings are free of charge for refrigeration during office hours (8 AM-6 PM)
  • Some buildings are free after hours (after 6 PM)
  • Some other public services such as drinking water at the Bantry counter, domestic water…

More specifically, a service fee is a fee applied by an investor to maintain the space where you work in the best condition. Offices that require a high service fee will also come with amenities corresponding to that fee.
In fact, office buildings for rent always apply quite high service fees, from 4-5 USD or more for each m2 of the corresponding office floor, however, these buildings always ensure for Tenants rent the most advanced facilities: automatic cooling central air-conditioner system, modern spacious parking basement, CCTV cameras operating 24/24 to ensure the best security for business assets. Thanks to the above reasons, although offices for lease in District 1 have quite high rents, these buildings always have an ideal occupancy rate of 90% or more.

What services do the management fees (service fees) include?

Currently, in Ho Chi Minh City, the list of Grade A buildings is still quite limited, most of these buildings have just been completed and put into operation in recent years, so the situation The office is still very new, comes with modern facilities and a series of after-sales services, so the service fee is also at the highest level – about 5-8 USD/m2.
Meanwhile, office buildings for rent in District 1 or Grade B offices in other districts have service fees ranging from 3 to 6 USD/m2. In contrast, Grade C offices in the central area or offices located in locations that are not convenient for traffic often apply a relatively low service fee, only from 2 to 3 USD.
In addition, the chain of buildings in new urban areas such as Phu My Hung urban area in District 7 or An Phu An Khanh villa area in District 2 only apply a maximum service fee of 3 – 5 USD, this is assessed as follows: Price is a move to attract investors who are looking to open more branches or new businesses.

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

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