CBRE

FIGURES|TAIPEIOFFICE|Q32025

Rentalgrowthmoderatesasvacancy

risesfurther

$2,517

AverageRent(NTD)

EXECUTIVESUMMARY

-InQ32025,netabsorptionofqualityofficespaceinTaipei'sCBDfellintonegativeterritoryforthefirsttimeintwoyears.Thedeclinemainlyresultedfromaslowdowninrelocation

activity,coupledwithselectedtenantsreducingleasedspaceormovingtonon-coreareas.

-Twonewofficebuildingswerecompletedthisquarter,collectivelyprovidingatotalleasablespaceof15,502ping.Theriseinnewsupplyandfallintake-uppushedupGradeAand

GradeBofficevacancyto9.8%and4.3%,respectively.

-Overthequarter,GradeAandGradeBofficerentsgrewby3bpsand40bpsq-0-q,

respectively,reachingNT$3,088andNT$1,943perping,respectively.ThenearstagnationinrentalgrowthofGradeAofficeswasprimarilycausedbyanincreaseinvacantstock.

一TwonewbuildingsarescheduledforcompletioninTaipei'sCBDinQ42025,adding14,800pingofleasableareatothemarket.Inviewofthehighlevelofnewsupplyinthepipelineforthenextseveralyears,mediumandlarge-sizedcompaniesarelikelytodeferrelocationplansuntilthemarketturnsmorefavourabletotenants.

Note:Arrowsindicatechangefrom

-4,831

TotaNetAbsorption(ping)

previousquarter.

7.1%

AverageVacancy

FIGURE1:OfficeMarketFigures

Submarket

TotalStock

(ping)

GradeARentGradeBRent

(NTS/ping/mth)(NT$/ping/mth)

GradeAVacancy

GradeBVacancy

TaipeiMainStation

83,097

2,700

1,779

49.0%

2.1%

ZhongshanNorthRoad

35,856

--

1,933

--

1.7%

Nanjing-SongjiangArea

157,684

2,534

2,039

0.0%

8.4%

Minsheng-DunhuaArea

257,002

2,530

1,927

7.9%

5.7%

Nanjing-GuangfuArea

49,938

2,050

1,839

8.3%

5.9%

DunhuaSouthRoad

167,320

2,598

1,987

3.2%

2.2%

Xinyi-JilongArea

387,209

3,587

1,864

9.4%

3.3%

Source:CBREResearch,Q32025.

1

CBRERESEARCH◎2025CBRE,INC.

FIGURES|TAIPEIOFFICEIQ32025

2CBRERESEARCH◎2025CBRE,INC

NetAbsorptionandVacancy

TotalnetabsorptionofqualityofficespaceinTaipei'sCBDdroppedfrom9,875pinginQ22025to-4,831pinginQ32025.About20%ofGradeAofficebuildingsrecordedanincreaseinvacantspacethisquarterasleasingactivityslowedandafewmediumandlarge-sizedfirmsrelocatedtodecentralisedareasorreducedtheirfootprintforcost-savingpurposes.GradeAofficenetabsorptioncontractedto-2,641ping.NetabsorptionofGradeBofficespacedeclinedto-2,190ping,attributabletoaslowdowninnewleasesandanincreaseinsmallofficeunitsavailablefor

lease.

Duringthequarter,twonewqualityofficebuildings-YuantaSilvarStarBuildinginNanjing-SongjiangAreaandShinKongHuashanFinancialCentreinTaipeiMainStation—cameon

stream,providing15,502pingofleasablespace.Thenewcompletions,combinedwitha

contractionintake-up,pushedupGradeAandGradeBofficevacancyto9.8%and4.3%,

respectively.Since2023,nearly60,000pingofnewlybuiltGradeAofficespacehasbeen

completed.SlowergrowthinrelocationdemandcausedGradeAofficevacancytoreacha6.5-yearhighthisquarter.

LeasingActivity

Althoughrelocationactivitycontinuedtobedrivenbyupgradingdemand,thequartersawa

slightincreaseintenantsoptingtomovetogood-qualityGradeBofficesasacost-effective

alternative.Leasingrequirementsmainlyrangedbetween100and200ping,suggestingthat

mediumandlargetenantsareturningmorecautiousamidincreasingeconomicuncertainty.

Somemultinationalshavebeenobservedtostartevaluatingrenewalorrelocationoptionsatanearlierstageinthehopeofobtainingfavourabletermsfromlandlordsinthecomingyears,whenalargequantumofnewsupplywillbecompleted.

Whileleasingenquiriesremainedstable,demandforspaceabove300pingwassubdued.ManyoccupiersretainedacautiousstancetowardsCapEx,althoughafewtenantsinthefinancialandinsuranceindustrieswerewillingtoincreaseofficeleasingexpenses,eitherbyexpandingor

relocatingtohigher-gradebuildings.TheseincludedWellsFargoBank,whichmovedtooccupy298pingofGradeAofficespaceinXingyi-JilongArea.Therewerealsocasesofselectedfirmsrelocatingtheiroperationsfromoutsidethecityduemainlytobusinessrestructuring,with

VeoliamovingfromKaohsiungtoasizablespaceof619pinginTaipei.

FIGURE2:NetAbsorption

)000ping)

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

24

20

16

12

8

4

0

4

-8

■TMS■ZNR■NSA■NGA■MDA■DSR■XJASource:CBREResearch,Q32025.

FIGURE3:SelectedLeasingTransactions

Tenant

Size(ping)

Building

District

Industry

VeoliaWaste

TreatmentServices

619

TransGlobeLifeInsuranceMinQuanBuilding

MDA

Environmental

Services

WellsFargoBank

298

FubonLifeInsuranceBldg.(A25)

XJA

FinancialServices

U-ARKTechnology

259

WorldwideHouse

MDA

Technology/Software

TzeShinGroup

256

NationalFarmersAssociationTaipeiBuilding

Other

Logistics

OdinTechnology

157

TaipeiFinancialCenter

MDA

Technology/Software

Source:CBREResearch,Q32025.

FIGURES|TAIPEIOFFICEIQ32025

3CBRERESEARCH◎2025CBRE,INC.

Rents

AverageGradeAofficerentsedgedupby0.03%q-0-qtoNT$3,088perpinginQ32025,

indicatingafurtherslowdowninrentalgrowth.Leasingactivitylargelydrivenbyleaserenewalswasamongthereasonsbehindthedeceleration.Occupancyratesofnewlybuiltoffices

commandinghigherrentshaveclimbedslowlyinrecentmonths,suggestingthatoccupiers

haveturnedcost-conscious.AverageGradeAofficerentsinXinyi-JilongAreastoodat

NT$3,587perpingthisquarter,markingthefirsttimeinsevenandahalfyearsthatrentsinthisprimelocationdidnotgrowonaq-0-qbasis.

AlthoughGradeBofficevacancyincreasedby1.5ppq-0-qto4.3%,around75%ofGradeB

officelandlordswerenotunderimmediatepressuretosecuretenants.AskingrentsofsomeGradeBofficesenjoyinglowvacancywereraisedmodestly,leadingaverageGradeBoffice

rentstoriseby0.39%q-0-qtoNT$1,943perping.GiventhewiderentalgapbetweenGradeAandGradeBoffices,cost-drivenoccupiersseekingtoupgradetheirworkspacearemorelikelytorelocatetobetter-managedGradeBofficeswithgoodaccesstopublictransport.

Outlook

OwingtostrongdevelopmentinAlapplicationsandrobustdemandforconsumerelectronics,totalexportsinTaiwansurgedby36.5%y-o-yinQ32025.Thebetter-than-expectedexport

performancepromptedthenationalstatisticsagencytoreviseupTaiwan'sQ3GDPgrowth

estimateto7.64%y-0-y,anincreaseof4.73ppfromthepreviousforecast.Withrecentdata

indicatingapositiveeconomicoutlookforthenextfewquarters,somecompaniesinindustriesbenefitingfromtheAlboommaylooktoexpandtheirofficefootprint.

TwonewofficebuildingsareslatedforcompletioninQ42025,adding14,800pingofleasablespacetoTaipei'sCBD.Averagevacancyofqualityofficesisforecastedtoclimbto8%,withGradeAvacancyanticipatedtoexceed10%.Lookingaheadto2026,annualnewsupplyof

34,000pingisconsideredbyCBREtobemanageable.However,selectedlandlordswilllikelyfacerisingpressuretofillvacancies,ensuringthattenantswithlargespacerequirementswillcommandanadvantageinleasenegotiations.CBREexpectsthatTaipei'sofficemarketwillgraduallyshiftinfavouroftenantsinlate2026.

FIGURE4:AverageRentsandVacancy

AchievableRent(NTS/ping/month)

3,200

3,000

2,800

2,600

2,400

2,200

2,000

1,800

1,600

1,400

2015

2016

2017

2018

2019

2020

021

2022

2023

2024

2025

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

GradeARent

GradeBRent

GradeAVacancy—GradeBVacancy

AverageVacancyRate

Source:CBREResearch,Q32025.

FIGURE5:DevelopmentPipeline

AnnualNewSupply)000ping)

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025F

2026F

6

5

4

3

2

1

0

■XJA■DRA■NSA■MDA■TMS■Others

Source:CBREResearch,Q32025.

FIGURES|TAIPEIOFFICEIQ32025

MarketAreaOverview

■TaipeiMainStation(TMS)

■Minsheng-DunhuaArea(MDA)

■Xinyi-JilongArea(XJA)

■ZhongshanNorthRoad(ZNR)

■Nanjing-GuangfuArea(NGA)

■Nanjing-SongjiangArea(NSA)

■DunhuaSouthRoad(DSR)

Classification

CBRE'sclassificationofTaipeiofficebuildingsfollowsastructuredgradingsystemthat