Technology firms have fourished amid the COVID-19 pandemic and increased demand for office space, a trend that might continue, Jones Lang LaSalle Inc (JLL) said yesterday.
The top 25 technology firms in the US hired 600,000 more workers between the second quarter of 2020 and the third quarter of last year, lifting their payroll to 1 million and creating demand for 430,000 ping (1.42km2) of office space over the same period, the international property broker said.
The phenomenon could continue, making large Grade A office a focal point in the leasing market, JLL said.
JLL Taiwan managing director Tony Chao (趙正義) shared the same observation for Taiwan, home to the world’s largest suppliers of electronic components used in smartphones, laptops, TVs and vehicles, as well as artificial intelligence and Internet of Things applications.
Technology titans such as Hewlett-Packard Co, Advanced Micro Devices Inc, Alphabet Inc and Line Corp last year increased their office space in Taipei’s Neihu (內湖) and Nangang (南港) districts, as well as in New Taipei City’s Banciao District (板橋) by 4,000 to 5,000 ping, accounting for 65 percent of the overall take-up, Chao said.
Aside from growing demand, the trend has to do with a limited supply of Grade A offices in Taipei, he said.
Technology companies have benefited from the global health crisis, as it has forced companies and organizations to speed up digital transformation and embrace remote work and schooling, he said.
Companies are likely to seek to attract and retain talent by upgrading their working environment in the post-COVID-19 era, making new office buildings more popular, Chao said, adding that technology firms with expansion needs would have no choice but relocate to locations that are not central.
The vacancy rate has dropped to historical lows in central business districts, Chao added.
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