The US-China trade war boosts office rents in Taiwan as companies come home

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The US-China trade war boosts office rents in Taiwan as companies come home
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Rentals in Taipei have been rising as Taiwanese companies return home and international firms make shifts due to the U.S.-China trade war.

still lingering after more than a year, rents for offices in the densely populated capital of Taipei could continue to climb as Taiwanese firms consider returning home.

Take-up rate of Grade A office space — or offices in premium locations — has been robust in recent years. According to Chao, the availability of Grade A office space has already been constrained, as many tenants renting properties that are more than 20-years-old have been looking for newer places. There has also been a trend in companies consolidating their corporate spaces to newer, swankier buildings in central locations, and a rise in co-working spaces in similar locales.

The strong demand for Taiwanese real estate contrasts with slower global leasing demand where the total net take-up rate dropped 5% by the second quarter of 2019, noted Jones Lang LaSalle in its third quarter report this year.

 

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