Taipei 101 Expected to Raise Rents on Higher Floor Offices
2008/05/12 | By Judy LiTaipei, May 12, 2008 (CENS)--With the newly-elected Taiwan president stimulating more optimism in the local economy, the Taipei 101, Taiwan's most famous landmark and the world's tallest skyscraper, is seen as the address-to-be for corporate clients in Taiwan, Hong Kong and China
Currently more than 80% of the tower's available space has been rented and only nine floors, from the 75th to the 83rd, are still vacant, whose monthly rental is reportedly NT$5,000 (US$156.25 at US$1 = NT$32) per ping (1 ping = 36 sq/ft), much higher than corresponding NT$3,000 (US$93.75) for the lower levels. Typical monthly rental at the Taipei 101 is around NT$3,800-4,200 (US$118.75-131.25) per ping.
Insiders say that the global fame of the Taipei 101 is one of the main reasons for its rental appeal, with status-conscious tenants preferring the panoramic view available only with super-high structures. In fact recently the world-renowned Google followed various famous foreign firms in the city to relocate to the Taipei 101. Besides, many leading enterprises in Hong Kong and China have also showed interest in renting offices in the world's tallest skyscraper.
At the end of 2007, the average office rental in Hsinyi Project district, a recently developed financial area in the eastern sector that is also home to the Taipei 101, reached NT$1,959 (US$59.36) per ping monthly, exceeding for the first time the corresponding rental charged in the Minsheng E. Rd and Tunhua S. & N. Rd. sector, another thriving business section in Taipei city.
The first quarter of this year saw the monthly rental of Class-A offices in the city increase by 7.3% to NT$2,500 (US$78.13) per ping from NT$2,340 (US$73.13) recorded in the same quarter of last year. In the same period, the corresponding figure in the Hsinyi district sharply rose 15% to NT$2,890 (US$90.31) from NT$2,500 (US$78.13).
This year the rental for Taipei's Class-A offices may continue to rise for an annual growth of 8%-10%, to NT$2,700 (US$84.38) per ping per month, according to Jones Lang Lasalle, the world's leading real estate consultant.