SUPPLY SHORTAGE: Office rents last year rose 2.9 percent on average, the fastest increase in 10 years, with steeper increases in popular locations, JLL Taiwan said

Taipei Times
Date: Jan 09, 2020
By: Crystal Hsu  /  Staff reporter

Upscale office rents in Taiwan might increase 3 to 5 percent this year, driven by a supply shortage and sustained demand from companies in the technology, financial and biological medicine sectors, the local branch of international consultancy Jones Lang LaSalle (JLL) said yesterday.

JLL Taiwan, which commands a 60 percent share of the local leasing market, published the estimate after vacancy rates for grade A offices shrank to 2.1 percent in the final quarter of last year, while rents increased 1.1 percent to NT$2,806 (US$93.26) per ping (3.3m2).

The showing indicated a modest take-up rate of 5,498 ping during the October-to-December period, which the broker said resulted from a tight supply, rather than tepid demand.

For the whole of last year, office rents rose 2.9 percent on average, the fastest increase in 10 years, with steeper hikes for some buildings in popular locations, JLL senior market director Brian Liu (劉建宇) told a news conference in Taipei.    [FULL  STORY]