An upscale Vietnamese coffee establishment has assumed control of a prominent retail location on Han Thuyen Street in Ho Chi Minh City’s District 1, approximately eight months following the closure of Starbucks’ premium outlet at the same site.
Cherished – Global Coffee is currently renting the three-story structure for 700 million Vietnamese dong monthly, slightly less than the previous payment of 750 million Vietnamese dong (approximately $29,000) made by Starbucks. Even though there has been a reduction, the rental cost still stands at almost double the typical rate for this region, known as a premium spot within Vietnam’s largest metropolis.
The estate boasts a facade wider than eight meters along with appealing vistas from higher levels, which justify its steep cost, as stated by real estate experts.
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A structure currently undergoing refurbishment on Han Thuyen Street in Ho Chi Minh City, which previously housed a Starbucks flagship outlet. Photo by VnExpress/Anh Ky |
According to brokers, it took the owner of the Han Thuyen building eight months to secure a new tenant due to Ho Chi Minh City having an ample supply of properties in its central business district, where numerous buildings have remained unoccupied for extended periods.
The proprietors of these properties rarely hurry to secure occupants, opting instead to maintain elevated rental prices.
Starbucks has meanwhile found
a new location in
Bitexco Financial Tower
a iconic structure, for its high-end store concept.
The newly opened store spans 500 square meters, and considering that the rental rate for retail spaces on the lower levels of the tower is approximately $150 per square meter, it amounts to roughly $75,000 monthly rent before any discounts for long-term occupants.
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.
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