Tech firms in Taiwan drive demand for office space

JLL shared that tech firms have thrived during the COVID-19 pandemic, which in turn, raised the demand for office space

The Edge Markets referred to CBRE, saying that the international property consultancy predicts a further increase of 5 percent to 10 percent to approximately USD150 billion in 2022 after commercial real estate investments in Asia-Pacific increased 30 percent year on year (y-o-y) to USD140 billion last year.

According to its 2022 Asia Pacific Investor Intentions Survey, “International capital is expected to remain active, with more investors from outside Asia-Pacific set to commit to new purchases to capture the region’s growth potential and diversify their portfolios.”

The results of the study suggest a greater interest in office assets. Investors anticipate at least a 10 percent growth in office demand within the next five years. 

As investors attempt to leverage flight-to-quality demand, grade A offices in key locations will be the focus. Also, office leasing improved in Asia-Pacific in 2021, with robust demand for traditional office space. The office net absorption rate is expected to rise 10 percent y-o-y in 2022, according to CBRE.

More: Taiwan’s economy slated to grow 4.42% this year

In a statement for Taipei Times, JLL shared that tech firms have thrived during the COVID-19 pandemic, which in turn, raised the demand for office space.

According to the international property broker, between the second quarter of 2020 and the third quarter of 2021, the top 25 tech firms in the United States hired 600,000 workers. This created demand for 430,000 pings (1.42 sq km) of office space.

JLL Taiwan managing director Tony Chao noted that Advanced Micro Devices Inc, Alphabet Inc, Hewlett-Packard Co, and Line Corp all increased their office space by 4,000 to 5,000 ping last year in Taipei’s Neihu and Nangang districts, as well as in New Taipei City’s Banciao district, making up for an overall take-up of 65 percent.

Real Estate Asia notes that office rents in Taipei will increase by 2 to 3 percent, but there are no anticipated major projects until next year.

The Property Report editors wrote this article. For more information, email: [email protected].