AI Boom Drives Commercial Real Estate Demand, Five Transactions Exceed 10 Billion NT Dollars in First Half

The burgeoning artificial intelligence sector is significantly boosting the commercial real estate market, with technology firms emerging as the leading buyers. This trend has revitalized overall market activity, evidenced by five major transactions each exceeding 10 billion New Taiwan dollars in the first half of the year alone. Notably, three of these substantial deals involved acquisitions by technology companies.

According to data compiled by Colliers International, these significant transactions included Micron's purchase of a factory in Miaoli's Tongluo Industrial Park, ASE Technology Holding's acquisition of a facility in Southern Taiwan Science Park, and NVIDIA's securing of land use rights in Taipei's Beitou Science Park. Additionally, Century Iron and Steel acquired an approximately 83,000-ping factory area in Guanyin Industrial Park from Chemours, and KGI Life Insurance obtained land use rights for the Lu-Bao plant in Taipei.

Colliers International Chairman and Managing Director Liu Xue-long noted that since ChatGPT's official launch in 2023, the global tech industry has entered a new growth phase. Taiwan, as a crucial part of the supply chain, is experiencing increased demand for office spaces, research and development centers, laboratories, and data centers. Chen Sung-min, Senior Executive Director of Colliers' Corporate Client Services, added that AI's computing power drives electricity demand, making power supply and energy issues focal points for the market. Tech companies specifically prioritize robust power systems, floor load capacity, and even the dimensions of freight elevators when selecting sites.

The expansion of major companies like TSMC into southern Taiwan is also driving demand for industrial real estate and corporate office spaces in the region. This has attracted investment from developers and life insurance companies, increasing activity in southern Taiwan's commercial real estate market. Examples include Nanshan Life Insurance's purchase of commercial office space and a northern developer's acquisition of a major urban renewal project in Kaohsiung.