A Vietnamese coffee shop has taken over a prime retail space on Han Thuyen Street in Ho Chi Minh City’s District 1, eight months after Starbucks closed its high-end store there.
Adoré – World Coffee is now leasing the three-story building for VND700 million per month—slightly below the VND750 million (around US$29,000) Starbucks had previously paid. Despite the drop, the rent remains nearly twice the average for the area, which is considered a prime location in Vietnams’ biggest city.
The property has a frontage of more than eight meters and nice views from the upper floors, explaining its high price, according to property analysts.
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A building under renovation on Han Thuyen Street, HCMC, where Starbucks’ premium store used to be located. Photo by VnExpress/Anh Ky |
Brokers say it took eight months for the Han Thuyen building owner to find a new tenant because HCMC has an abundant supply of property in its downtown area with many buildings remaining vacant for months.
The owners of such buildings do not often rush to find tenants but prefer to keep rents high.
Starbucks has meanwhile found a new location in Bitexco Financial Tower, a landmark building, for its premium store concept.
Its new store measures 500 square meters, and, with commercial space in the tower’s lower floors costing around $150 per square meter, is paying some $75,000 a month before discounts for long-term tenants.
Starbucks plan to open another premium store in HCMC in July at a “downtown” location.
VnExpress has learned that the location is likely to be Diamond Plaza, 300 meters away from Han Thuyen Street.
