CBRE observed a modest improvement in leasing enquiries for small and medium sized office units from the previous quarter. However, office net absorption in Taipei fell to -596 ping, the first negative reading recorded in 4.5 years. While the decline in net absorption reflected a halt in decision making by multinationals following the onset of the pandemic, it was mainly due to flight-to-quality activity in the Grade B office segment
In spite of Grade B net absorption falling into negative territory, overall upgrading and expansion demand strengthened in Q3 2020, a trend seen in both the Grade A and Grade B office segments. Companies benefiting from the stay-at-home economy were most active, especially those in the gaming and internet-based industries.