Instead of choosing prime locations on major streets, many business owners in the fashion, beauty services, and food & beverage industries are increasingly opting for premises in small alleys and lanes to reduce operational costs.

Many business owners are choosing to rent premises in small alleys and lanes to reduce rental costs. IN THE PHOTO: Shops and eateries in an alley off Ham Nghi Street, Thanh Khe District. Photo: MAI LY.

Lower rental costs

High rental prices on main roads have significantly increased business expenses, forcing many shop owners to either move into alleys or switch to online sales from home. Phan Thi Thu Ha, a resident of An Hai Bac Ward, Son Tra District, once ran a cosmetics store on Khuc Hao Street but had to shut down due to unstable business performance and high rental costs. She now sells online from home.

According to Ha, online sales allow her to cut expenses related to rent, staff, electricity, and water, reducing pressure on revenue targets. She primarily sells through e-commerce platforms such as Shopee and TikTok Shop, paying only taxes, packaging, and delivery fees.

Similarly, Nguyen Minh Nhat, the owner of "The 1.9.9.3" eatery in Thac Gian Ward, Thanh Khe District, runs his business from the ground floor of his home, despite it being in a narrow 2.5m-wide alley. He notes that many others in the area have also rented premises in this alley for similar businesses, such as rice eateries and beer shops. To attract customers, he actively promotes his restaurant via Facebook and TikTok, using marketing strategies like organising food-eating challenges and introducing trendy dishes to increase engagement and build a loyal customer base.

Though commercial spaces in alleys offer lower rental costs, they lack the visibility of main road locations. To attract business owners to rent these spaces, landlords have started modernising and upgrading facilities, ensuring they meet modern business needs. Vu Quang Huy, who runs a mobile phone shop in an alley off Phan Thanh Street, Thanh Khe District, shared that he chose an alley location due to budget constraints. His current rent is VND 3 million per month, and he has been renting the space for two years.

In reality, opening a shop in an alley or small lane does not attract as many customers as locations on major streets. Therefore, many business owners opt to run frequent advertisements on platforms like Google and Facebook to increase visibility and reach more customers. Rental costs typically make up 15-20% of revenue, allowing businesses to save on expenses and achieve higher profit margins.

Thriving commercial rental market

According to Mr Phan Van Duc, Deputy Director of San Sang Nhuong JSC, which specialises in business premises rental and transfer consulting, an increasing number of small business owners prefer alleys, lanes, or smaller streets to reduce rental costs. This trend is most common among clothing retailers and F&B businesses. These businesses prioritise social media marketing and often collaborate with KOLs (Key Opinion Leaders) and KOCs (Key Opinion Consumers) to promote their shops and products.

A survey of real estate websites and rental groups on Facebook reveals that there are hundreds of available business premises for rent in Da Nang, with prices varying widely from a few VND million to over VND 100 million per month, depending on the size and location.

For example, commercial rental prices on major streets in Thanh Khe and Hai Chau districts are as follows: On Dien Bien Phu Street, a 5m-wide shop (2-3 storeys) costs VND 25–35 million/month, while a 10m-wide shop costs VND 65–80 million/month. On Le Duan Street, a 4-5m-wide shop costs VND 30–45 million/month, while a 9-10m-wide shop costs VND 70–120 million/month. On Nguyen Van Linh Street, a 5m-wide shop costs VND 30–50 million/month, while a 10m-wide shop costs VND 80–120 million/month. On 2/9 Street, a 5-6m-wide shop costs VND 35–55 million/month, while a 10-12m-wide shop costs VND 90–120 million/month. Around Han Market, a 5m-wide shop costs VND 40–60 million/month, while an 8-10m-wide shop costs VND 100–150 million/month.

In contrast, rental prices in alleys, lanes, and smaller streets are significantly lower, ranging from VND 2 million to 15 million per month. The rental market remains highly active, with numerous listings appearing daily in Facebook groups and real estate platforms. That said, while small business owners tend to choose alley locations, established brands and companies looking to build a strong brand presence still prefer high-visibility main roads.

“Between 2023 and late 2024, many businesses struggled due to high rental costs and were forced to transfer their leases. However, in early 2025, landlords became more aware of business conditions and adjusted rental rates to retain tenants,” Duc explained. Since early 2025, demand for business premises has surged, and his company has seen a 30-40% increase in rental transactions compared to 2024. This suggests that investor confidence is improving, and businesses have completed restructuring and are now looking to expand operations.

Reporting by MAI LY - Translating by TRUC VY