Multinationals Moving Out of Downtown Taipei to Cut Rental Outlays

Taipei, June 25, 2009 (CENS)--In order to cut rental outlays amid the business downturn, many foreign enterprises in Taiwan have moved their offices from downtown Taipei to the outskirts of the city recently, notably Neihu, which is to be incorporated into Taipei's mass rapid transit (MRT) network soon.

Jones Lang LaSalle, Taiwan, reported that so far this year, tenants have moved out of A-grade offices totaling 32,000 pings (one ping equals 36 square feet) in downtown Taipei, even worse than the state during the period of SARS (severe acute respiratory syndrome) epidemic.

Up to now, some 20 multinationals, in the fields of hi-tech and finance, have retreated from downtown Taipei, such as Xinyi District and Dunhua N. Road area, to Neihu Science Park, thereby halving their rental outlays. The company predicted that the current will continue throughout the second half this year, should the economy remain in the doldrums.

Sherry Wu, vice president of the company's commercial-property department, noted that the office moving is part of the multinationals' austerity measures during the business downturn, which also includes manpower reduction and switch to economic-class plane ticket and cheaper hotels for executive travel.

Wu pointed out that office rental at Neihu Science Park reaches only NT$900-1,200 per ping, compared to NT$2,800 for A-grade office in Xinyi planned district, which even topped NT$3,400 last year.

On the other hand, Neihu boasts a number of attractions, including amply supply of office space, the clustering of hi-tech firms, and the imminent inauguration of the MRT Neihu line.