The vacancy rate for Grade-A offices in Taipei last quarter was unchanged at 2.7 percent, while rents climbed 1.3 percent from a year earlier, as companies maintained a cautious approach about spending amid economic weakness, property consultancy Jones Lang LaSalle (JLL) Taiwan said on Tuesday.
“The vacancy rate has consolidated within the 3 percent range, indicating the leasing market remains healthy, despite the economic slowdown,” JLL Taiwan said, adding that rent increased due to a tight supply of upscale offices in the city’s prime Xinyi District (信義).
However, economic uncertainty has turned corporate tenants conservative about expanding, which would constrain the pace of rent hikes ahead, the consultancy said.
Photo: Hsu Yi-ping, Taipei Times
JLL Taiwan managing director Kevin Hou (侯文信) said that commercial properties were not spared the impact of the economic slowdown, but nonetheless performed better than expected last quarter.
That was because regular rent income proved a good defense against inflation, a quality that is not easily replaced by other investment tools, Hou said.
The commercial property market might gain further momentum in the second half if the local economy comes out of the woods, Hou said.
In particular, JLL Taiwan said it has spotted growing demand for environmental, social and governance (ESG) green buildings, as Taiwan is seeking to achieve net zero carbon emissions by 2050.
A JLL survey showed that 65 percent of Grade-A office spaces in Xinyi have green architecture certifications, with six buildings owning multiple green certifications.
A considerable number of Grade-A building landlords have introduced plans to help tenants purchase green energy, with life insurers the most active, JLL said.
More than 55 percent of Grade-A offices in Xinyi District operate on green energy and this percentage is likely to rise in line with the global leasing trend, the consultancy said.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS