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Taipei Office Figures Q3 2023

November 17, 2023 10 Minute Read

‒ Total office net absorption improved from -1,280 ping in Q2 2023 to 3,420 ping in Q3 2023, the

highest level in five quarters. Although Grade A office net absorption rose from negative territory to

2,133 ping, the revival was mainly due to a landlord reserving a sizable volume space for self-use by its

subsidiaries.

‒ Grade A office vacancy fell slightly to 7.8% on the back of increased take-up, while Grade B office

vacancy climbed to a one-year high of 3.6%, mainly due to the addition of around 5,150 ping of new

stock during the quarter.

‒ With vacancy in almost three-quarters of office buildings in Taipei’s major office districts standing

below 3%, most landlords retain the upper hand in negotiations. Grade A and Grade B office rents

grew moderately to NT$3,024 and NT$1,889 per ping, respectively.

‒ The addition of around 23,600 ping of new Grade A office space in Q4 2023 is expected to push

vacancy to a five-year high. However, the office market in Taipei’s CBD will likely continue to favour

landlords in the coming months owing to potential delays in the completion of new supply and low

vacancy in existing buildings.