Savills

Publication

Office Brief - Q3 2024

Rents and vacancy rates both rise

Economic stability and the completion of new office buildings have driven tenants to express increased interest in upgrading.

  • The stable economy helped the average rent in the Grade A office market to hit NT$3,201 per ping in Q3/2024, up 0.4% QoQ and 2.8% YoY.
  • The completion of new buildings in non-core districts pushed overall vacancy rates to 7%, the highest since 2019.
  • High-rated green buildings are attracting major international tenants. Google, for example, leased 4,212 pings in the CAAM Chengde 168, which holds LEED Platinum certification, at a rent of NT$3,321 per ping.
  • Currently, 56% of Grade A office buildings have green building certifications, with nearly 95% of new buildings meeting these standards. Among these, almost 60% received dual certification both domestically and internationally.
  • Changes in rents are diverging. Landlords of premium offices are showing flexibility in rents to attract tenants, while rent spikes are being observed in specific districts which have faced a lack of new supply for some time.

Six new Grade A office buildings will add 58,000 ping of space to the market, potentially pushing vacancy rates up to nearly 10% at the end of 2025. Landlords need to start renewal planning early to retain quality tenants.

Erin Ting, Savills Research