Taipei Office Figures Q1 2023

‒ Total office net absorption decreased significantly fto -3,612 ping in Q1 2023, largely due to subdued demand for Grade A office space. Grade A office net absorption fell to -4,748 ping, marking the worst quarterly performance since 2016.

‒ An increasing number of multinationals were seen downsizing their offices for cost saving over the quarter. In addition, a newly completed project released 20,000 ping of vacant space to the market, pushing up average Grade A office vacancy to 7.8%.

‒ Grade A office rents edged up by 0.2% q-o-q, the slowest growth in five years. Grade B office rents remained on a mild upward trend on the back of stable relocation and upgrading demand.

‒ Several new office buildings are scheduled for completion over the course of 2023, providing a total GFA of 49,730 ping to the office market in Taipei’s CBD. With vacancy rates set to increase further, landlords are expected to show more flexibility on incentives.