Sky-high rental fees may force Taiwan Stock Exchange Corp (
Taiwan Stock Exchange, one of the major shareholders of the 508m skyscraper, originally planned to rent six floors in the Hsinyi district building. The company is considering occupying only four floors instead, said section chief Chang Chun-fu (張春夫).
"It's too expensive," Chang said, referring to Taipei Financial Center Corp's (TFCC,
"We are still negotiating with the landlord and hope to reach prices both parties can accept," Chang said.
Security is another concern affecting the company's decision to move.
"In an effort to protect our client's data and make sure stock transactions are not interrupted, we will not locate our computer servers in the tower," said Wu Fu-hsing (
Because of the possibility of earthquakes or terrorist attacks, the company is looking for a separate location in suburban Taipei to install its computer servers, Wu added.
One real-estate analyst said the market will not support high rents.
"There is a significant gap between current market prices and the rent Taipei 101 proposes charging," said Vicky Hsu (許美珠), a researcher at Colliers Jardine Ltd (怡高物業顧問), the local branch of Colliers Jardine International.
The average monthly rent in premium office buildings in Taipei is between NT$2,200 and NT$2,400 per ping, a 2.72-percent drop over the previous quarter, she said.
"We expect office rents will likely keep falling for the next 12 months," Hsu said.
Although the housing market started showing signs of a rebound as early as last month, the outlook for the office building sector is gloomy, she added.
"Over-supply is still a major problem, and we expect the amount of newly-released office space will peak next year," Hsu said. "As of the third quarter of next year, we estimate office rents would see a 10 percent drop from the current quarter."
TFCC originally planned to announce its rental plan at a leasing convention late this month, but decided to postpone the event until mid-October, said the company's vice president, Scott Chen (
In related news, Taipei Financial Center Corp yesterday named Chiao Yu-lon (焦佑倫), chairman of Walsin Lihwa Group (華新麗華), as a replacement for chairman Benny Hu (胡定吾), the company said in a statement. Hu currently serves as chairman of China Development Financial Holding Co (中華開發金控).
Walsin Lihwa is a major shareholder of TFCC, holding 6.18 percent of the company.
TFCC held a topping-off ceremony to celebrate the final construction stage of the project on July 1, and the office tower is expected to open October next year, a company statement said.
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