The market for warehouse for lease Vietnam continued to demonstrate steady performance despite a challenging global economic environment. According to JLL Vietnam, both northern and southern Vietnam recorded stable growth in supply, leasing demand, and rental performance, highlighting the resilience of the country’s industrial real estate sector and the continued need for modern warehouse facilities.
Warehouse Supply Continues to Expand Across Vietnam
Vietnam’s ready-built warehouse market continued to expand, reaching a total supply of 4.4 million square metres by the end of last year. In northern Vietnam, an additional 256,000 sq.m of warehouse space entered the market, bringing total supply to more than 2.04 million sq.m. Developers have increasingly adopted multi-story and flexible, multi-functional warehouse designs, allowing more efficient land use while accommodating a wider range of tenant requirements. These modern warehouse formats reflect the market’s ongoing evolution and its ability to support increasingly diverse industrial activities.
The southern market also recorded solid growth in new supply, helping total prime ready-built warehouse stock reach approximately 2.4 million sq.m, representing an 11.2% year-on-year increase. Among the newly completed developments was a 120,000 sq.m two-story warehouse project, highlighting the growing preference for space-efficient warehouse solutions. The continued delivery of new facilities demonstrates developers’ confidence in Vietnam’s long-term manufacturing and logistics sectors while providing businesses with more warehouse options.
Looking ahead, JLL expects additional warehouse supply to enter both northern and southern Vietnam. Northern provinces are forecast to add 683,000 sq.m of new warehouse space, while southern provinces are expected to contribute another 313,000 sq.m. The market is also expected to welcome new hybrid warehouse concepts, reflecting the industry’s continued focus on improving operational efficiency and offering more flexible solutions for tenants.
Leasing Demand Remains Strong Across Both Regions
Demand for ready-built warehouses remained healthy throughout the year, supported primarily by manufacturing companies and third-party logistics (3PL) providers. Stable industrial production and expanding supply chain activities continued to generate demand for modern warehouse facilities despite a challenging global economic environment. This consistent leasing activity illustrates the resilience of Vietnam’s industrial property market.
Northern Vietnam recorded particularly strong leasing momentum during the fourth quarter. Net absorption reached 125,000 sq.m, exceeding the combined leasing volume of the previous three quarters. Total annual net absorption climbed to 236,000 sq.m, representing a 13% year-on-year increase. Manufacturing companies remained the largest source of demand, while stronger consumer spending toward year-end further supported warehouse leasing activity. The performance suggests that demand fundamentals remain stable across the northern industrial market.
Southern Vietnam also experienced impressive leasing growth despite global economic headwinds and the impact of US tariff policies. Fourth-quarter net absorption exceeded 97,600 sq.m, bringing total annual absorption to 453,000 sq.m, an increase of more than 70% compared with the previous year. Demand was mainly driven by 3PL logistics providers and businesses serving the domestic consumer market during the peak shopping season. According to JLL, leasing demand is expected to remain stable in the coming year as manufacturing expansion and logistics operations continue supporting warehouse occupancy.
Rental Rates Remain Competitive While Warehouse Quality Improves
Warehouse rental rates continued to increase gradually while remaining competitive for occupiers. The balance between expanding supply and healthy leasing demand has helped maintain relatively stable pricing across both northern and southern Vietnam. At the same time, developers have continued improving warehouse quality by investing in more efficient layouts and operational standards, creating greater value for tenants.
In northern Vietnam, the average asking rent reached US$4.93 per sq.m per month during the fourth quarter, increasing 1.48% quarter-on-quarter and 6.62% year-on-year. In southern Vietnam, the average asking rent reached US$5.04 per sq.m per month, recording slight increases on both a quarterly and annual basis. While rental rates continued to rise moderately, effective occupancy costs remained competitive as developers maintained flexible leasing incentives amid growing market supply.
According to Lê Thị Huyền Trang, Managing Director and Head of Consulting and Research at JLL Vietnam, the ready-built warehouse market demonstrates developers’ ability to adapt to changing tenant requirements. Alongside expanding supply, greater emphasis has been placed on warehouse quality, operational efficiency, and flexible designs such as multi-story facilities. These improvements continue to strengthen Vietnam’s ready-built warehouse market while providing businesses with more efficient and adaptable industrial space.
In conclusion, Vietnam’s ready-built warehouse market continues to maintain stable growth, supported by expanding supply, resilient leasing demand, and competitive rental rates. As developers continue introducing modern warehouse concepts and improving operational quality, the outlook for the warehouse for lease Vietnam market remains positive, providing businesses with an increasingly diverse range of industrial warehouse solutions across both northern and southern Vietnam.
Source: Vietnam News