• Total office net absorption decreased from 4,203 ping in Q2 2022 to -2,806 ping in Q3 2022, mainly due to a surge in vacancy in the Grade B segment.
  • While average vacancy edged up to 3.7%, a lack of medium and large sized units available for lease ensured that landlords retained the upper hand in rental negotiations.
  • Average Grade A office rents rose by 0.8% q-o-q to NT$2,993 per ping, with the Xinyi-Jilong Area leading rental growth among major office districts.
  • Relocations were primarily fueled by SMEs taking up spaces of under 200 ping. Activity also involved some Grade A office tenants seeking cost saving opportunities.
  • Although Taipei will remain a landlord’s market for the foreseeable future, Grade A office rental growth is expected to moderate amid the uncertain economic environment.