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Taiwan Office Brief - Q2 2025

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Contacts & Related Research

Office leasing demand has softened

Foreign retail brands, tech companies, and Japanese companies showed relatively stronger demand

  • Due to the uncertainty over tariffs and the economy, multinational firms—core tenants in the Grade A office market—are showing increased caution in expanding costs.
  • Leasing activity slowed in Q2/2025, while Grade A office rents climbed to NT$3,232 per ping — up 0.5% QoQ and 1.5% YoY, with a three-year annual growth rate of 2.4%.
  • The vacancy rate in the Grade A office sector rose to 7.3%, up 1.4 percentage points from the previous quarter and marked the highest level since 2019.
  • Six new buildings totalling 54,000 ping are set to be completed in H2/2025, driving the overall vacancy rate to reach 10%, with the significant increases expected in non-core and Dunhua N. districts.
  • Leasing demand was driven by international retail brands, software firms, and Japanese companies, with tenants placing greater emphasis on building quality rather than prime location.

Given rising vacancy rates and abundant upcoming new supply, the bargaining power between tenants and landlords has started to shift. The prime and new grade A office leasing market is gradually moving from the landlord side toward the tenant side.

Erin Ting, Savills Research
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