Average monthly rent for Grade-A offices in Taipei last quarter climbed 3.6 percent year-on-year to a record high of NT$3,052 per ping (3.3m2), property consultancy Jones Lang LaSalle (JLL) Taiwan said on Tuesday.
It is the first time that the average rent for Grade A offices has been above NT$3,000 per ping, driven mainly by self-occupancy, upgrades and relocation needs from companies in the technology, financial and pharmaceutical sectors, JLL Taiwan said in a report.
On a quarterly basis, average rent rose 2.2 percent, the report said.
Photo: Hsu Yi-ping, Taipei Times
Rent for offices in the city’s prime Xinyi District (信義) increased 4.8 percent year-on-year to an average of NT$4,088 per ping — also a new high — with the average cost of premier floors standing firm at NT$5,000 per ping, JLL Taiwan said.
The vacancy rate for Grade A offices in Taipei last quarter grew 2.33 percentage points from a year earlier and 1.63 percentage points from the previous quarter to 4.3 percent, the report showed.
An addition of almost 30,000 ping of new office space accounted for the increase in the third-quarter vacancy rate, the report said, adding that the uptick was temporary in nature, as new office leasing totaled 14,000 ping and the increase in rent outpaced the vacancy rate’s growth.
“Landlords still have the upper hand,” JLL Taiwan said.
Rent is expected to continue rising in the near future, but might mitigate in 2027 when 222,000 ping of new office space would be added to the market in Nangang District (南港) and other core business areas, with 65.3 percent of it available for leasing, JLL Taiwan managing director Kevin Hou (侯文信) said.
Increasing demand for green architecture would also put pressure on landlords to comply and help reduce carbon emissions, Hou said, adding that JLL Taiwan created a task force earlier this year to help clients obtain green licenses.
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