Wed, Jan 07, 2026 page9

• New phase ahead for office space market: JLL Taiwan

  TREND? After six years of a landlord-driven market, the market could be shifting toward tenants, giving them greater choice and bargaining power, an analyst said

  • By Crystal Hsu / Staff reporter
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  Taiwan’s commercial property market is entering a transitional and increasingly competitive phase this year, as rising office availability, regulatory changes, and demand from artificial intelligence (AI) and semiconductor industries reshape leasing dynamics, consultancy Jones Lang LaSalle Taiwan Ltd (JLL Taiwan, 仲量聯行) said yesterday.

  The market this year would be characterized by technology-driven upgrades, a gradual shift toward a more balanced office market and regulatory reforms that could unlock new sources of capital, JLL Taiwan managing director Kevin Hou (侯文信) told a news conference in Taipei.

  “Good new offices are still being sought by many companies,” Hou said, highlighting continued corporate demand for high-quality, newly completed buildings despite broader market consolidation.

  

  Jones Lang LaSalle Taiwan Ltd managing director Kevin Hou speaks at a news conference in Taipei yesterday.

  Photo: Hsu Yi-ping, Taipei Times

  Demand from AI-related sectors, the semiconductor supply chain and growing environmental protection requirements are expected to drive upgrades in office space, he said.

  On the supply side, Taipei’s city center is projected to add about 48,000 ping (158,678m2) of new Grade-A office space this year, Hou said, adding that, after excluding owner-occupied portions, about 24,000 ping would enter the leasing market.

  By contrast, the city’s Nangang District (南港) would face a larger wave of new office availability and intensifying competition among landlords, giving tenants greater negotiating leverage, he said.

  The company also pointed to a broader transformation in which urban renewal and transit-oriented development are emerging as key growth areas.

  Rail infrastructure projects and metro-linked redevelopment initiatives have become a new battleground for developers, with government tenders and contract values reaching record highs last year, it said.

  Revisions to Taiwan’s real-estate investment trust regulations are expected to pass the legislature in the second quarter, a development that could introduce fresh liquidity into the commercial property market, Hou said.

  Grade-A office transactions in Taipei last year exceeded 50,000 ping for the second consecutive year, with deals in core business districts hitting their highest level in nearly seven years, JLL Taiwan office leasing advisory director Christina Yu (游淑芬) said.

  However, rents showed clear signs of slowing as the market entered a consolidation phase, Yu said.

  In the core districts, rents rose about 1.7 percent year-on-year, with average monthly rents reaching NT$3,258 per ping, the company said.

  After six years of a landlord-driven market, rents have risen a cumulative 18 percent, and the market could now be shifting toward tenants, giving them greater choice and bargaining power, Yu said.

  Taiwan’s office market is becoming more competitive, but demand for prime and high-specification space remains resilient, even as landlords face mounting pressure from new supply and evolving tenant expectations, JLL Taiwan said.
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