Landlord lowers price, tenants still find it difficult to find
On bustling business streets in Ho Chi Minh City such as: Hai Ba Trung, Nguyen Thi Minh Khai, Cach Mang Thang Tam... many frontage houses are still closed, hanging signs for rent for a long time. Although homeowners reduce prices, extend payment times or support initial costs, finding tenants is still difficult.
Ms. Ho Thi Quyen - owner of a front-facing house on Cach Mang Thang Tam street (Hoa Hung ward) said that previously the premises had almost no free space between rental contracts. However, since the beginning of the year, finding new customers has become significantly more difficult.
According to records, a similar situation appears on many roads that were once considered "golden land" for retail. Flats with beautiful locations and large areas are still offered for rent, but the time to find customers is prolonged.
Mr. Tran Quoc Minh - owner of a front-facing house on Hai Ba Trung street (Tan Dinh ward) - said that before, every time old customers returned the premises, it only took about a few weeks for new people to come. Currently, the free time can last for several months.
Many people ask very carefully about the price, rental term, deposit and then decide. Some people negotiate to reduce by 10-20% but after calculating the cost, they still do not rent" - Mr. Minh said.
In the opposite direction, Ms. Nguyen Thuy Linh - who is doing fashion business on Nguyen Trai street (An Dong ward) - said that the rental price is only part of the cost problem. Previously, customers passed by the store quite a lot. Now customers know about the store through social networks, watch livestreams and then place orders. If renting premises is too large, rent and employee costs will create great pressure.
The premises must create experiences, not just for selling goods
It is noteworthy that rental prices at good quality locations have not decreased sharply. Ms. Le Thi Huyen Trang - General Director of JLL Vietnam - said that rental prices at good quality locations have even increased slightly.
This slight increase reflects that land owners are prioritizing maintaining occupancy rates and retaining existing tenants through flexible incentive structures, instead of pushing up rental prices in the context of economic incertitude.
Thus, the reason is not entirely in the price but in the business efficiency problem of the tenants.
“Business models based heavily on casual customers at street-front stores are increasingly under pressure. When consumers change their shopping habits, businesses must consider whether revenue from a physical store is enough to cover fixed costs. E-commerce, social networks and livestream are giving customers more shopping options without having to go directly to the store,” Ms. Trang said.
However, according to Ms. Trang, the demand for space for retail brands with experience elements is still maintained well in Q2/2026. This shows that physical space has not been completely replaced by e-commerce, but must bring greater value than a simple point of sale.
Shopping centers have an advantage when combining shopping, eating, playing and experiencing. Meanwhile, a single street space is difficult to create equivalent experiences, and they have to bear operating costs and attract customers themselves.
The problem of unsold street space is therefore not only "how much rent" but "how much value the space creates". In the long term, the ability to adapt to the new business model will determine the attractiveness of the space.
