Rent for grade A office space in Taipei gained 4.4 percent this quarter to NT$2,953 (US$99.63) per ping (3.3m2), with vacancy rates hovering around historic lows of 2 percent amid continued demand from tech and non-tech firms, the local branch of Jones Lang LaSalle Inc (JLL) said yesterday.
The vacancy rate made Taiwan the best performer in Asia, despite the COVID-19 pandemic, JLL Taiwan Ltd (仲量聯行) said.
The commercial property market — especially office buildings, which generate stable rental income — was resilient even as COVID-19 cases increased, JLL Taiwan managing director Tony Chao (趙正義) said.
Photo: Hsu Yi-ping, Taipei Times
INSURERS
Office spaces are particularly attractive to local life insurance companies which need to park funds and defend against inflation, Chao added.
Taiwan’s low vacancy rate also has to do with high-tech firms and traditional manufacturers expanding their capacity to accommodate increasing business, Chao said.
Some landlords have taken advantage of the pandemic this quarter to upgrade their office spaces to make them more environmental friendly and competitive, he said.
Vacancy rates were the lowest in Taipei’s Nangang District (南港) at 0.8 percent in the April-to-June period, supported by demand for large headquarters and the city government’s promotion of the suburban area, JLL Taiwan said.
Vacancy rates in Neihu District (內湖) fell below 4 percent due in part to limited supply, it said.
JLL Taiwan stood by its expectations that vacancy rates would remain between 2 and 4 percent for the next three years on the back of solid demand from local firms.
URBAN RENEWAL
Urban renewal efforts would help fuel relocation needs and accelerate digestion of new spaces, the broker said.
There might be 100,000 ping of new office space added in the next five years, giving tenants more options, it said.
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