Average office vacancy rate hit 3-year low of 6.3% in Taipei in Q1

Taipei, April 6, 2005 (CENS)--The average vacancy rate for A-class rental offices in Taipei hit a three-year low of 6.3% in the first quarter of this year and the average monthly rental rebounded to 2003's level of NT$2,200 (US$64.71 at US$1 = NT$34) per ping (1 ping = 36 sq/ft), according to a report released by Jones Lang Lasalle (JLL), the world's leading real estate consulting firm.

Wang Chih-ping, general manager at JLL's branch here, noted that the average monthly rental of Taipei's A-class offices surged 3% in the fourth quarter of 2004. And the rental further rose 1.2% or NT$30 (US$0.88) per ping to NT$2,200 (US$64.71) in the first quarter this year, with that of the Hsin Yi Development District recording the highest rise of 1.7% to NT$2,350 (US$69.12) per ping.

In the first three months, an additional 6,270 pings of A-class offices in Taipei were rented out, helping driving down the vacancy rate to 6.3%. Wang pointed cited two major reasons for the growing demand for A-class offices in the first quarter. One was existing renters needed more space for expanding operations, and the other was the renters of B-class and C-class offices intended to upgrade their offices.

Wang said that office renters always look for better offices to move in so long as the rental prices are reasonable. An office building, with better infrastructure, facilities, and management, is always attractive to its tenants. Today an A-class office building should have the basic equipment, facilities and decoration of elevated flooring, emergency lighting system, optical-fiber cables, high-effective air conditioning, and complete fire-fighting equipment as well.