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.
Taiwan’s exports soared 56 percent year-on-year to an all-time high of US$64.05 billion last month, propelled by surging global demand for artificial intelligence (AI), high-performance computing and cloud service infrastructure, the Ministry of Finance said yesterday. Department of Statistics Director-General Beatrice Tsai (蔡美娜) called the figure an unexpected upside surprise, citing a wave of technology orders from overseas customers alongside the usual year-end shopping season for technology products. Growth is likely to remain strong this month, she said, projecting a 40 percent to 45 percent expansion on an annual basis. The outperformance could prompt the Directorate-General of Budget, Accounting and
Two Chinese chipmakers are attracting strong retail investor demand, buoyed by industry peer Moore Threads Technology Co’s (摩爾線程) stellar debut. The retail portion of MetaX Integrated Circuits (Shanghai) Co’s (上海沐曦) upcoming initial public offering (IPO) was 2,986 times oversubscribed on Friday, according to a filing. Meanwhile, Beijing Onmicro Electronics Co (北京昂瑞微), which makes radio frequency chips, was 2,899 times oversubscribed on Friday, its filing showed. The bids coincided with Moore Threads’ trading debut, which surged 425 percent on Friday after raising 8 billion yuan (US$1.13 billion) on bets that the company could emerge as a viable local competitor to Nvidia
BARRIERS: Gudeng’s chairman said it was unlikely that the US could replicate Taiwan’s science parks in Arizona, given its strict immigration policies and cultural differences Gudeng Precision Industrial Co (家登), which supplies wafer pods to the world’s major semiconductor firms, yesterday said it is in no rush to set up production in the US due to high costs. The company supplies its customers through a warehouse in Arizona jointly operated by TSS Holdings Ltd (德鑫控股), a joint holding of Gudeng and 17 Taiwanese firms in the semiconductor supply chain, including specialty plastic compounds producer Nytex Composites Co (耐特) and automated material handling system supplier Symtek Automation Asia Co (迅得). While the company has long been exploring the feasibility of setting up production in the US to address
OPTION: Uber said it could provide higher pay for batch trips, if incentives for batching is not removed entirely, as the latter would force it to pass on the costs to consumers Uber Technologies Inc yesterday warned that proposed restrictions on batching orders and minimum wages could prompt a NT$20 delivery fee increase in Taiwan, as lower efficiency would drive up costs. Uber CEO Dara Khosrowshahi made the remarks yesterday during his visit to Taiwan. He is on a multileg trip to the region, which includes stops in South Korea and Japan. His visit coincided the release last month of the Ministry of Labor’s draft bill on the delivery sector, which aims to safeguard delivery workers’ rights and improve their welfare. The ministry set the minimum pay for local food delivery drivers at
RSS