Page 44 - 2023 BRAVO! TAIWAN – Your best investment choice

Investment Locations with Unlimited

Potential

In order to boost investment, the Taiwan government has established not only
general purpose commercial and industrial zones but also special-purpose zones that
can meet changing business needs. At present there are 237 industrial parks, ten
technology industrial parks, three science parks, three agricultural technology parks,
four environmental science and technology parks, and seven free trade zones. All
provide excellent, low-cost business environments. To develop an industrial park or
other type of park, an environmental impact assessment is first conducted, allowing
enterprises that occupy the park to reduce environmental protection costs. Such
parks also provide ready-made basic infrastructure, fast and convenient administrative
services, and incentive measures (see the Benefits and Incentives to Attract Investors
section), and as a consequence they have become the first choice of location for
foreign and domestic firms that are setting up factories, R&D centers, or operations
headquarters in Taiwan.

General Commercial Zones

Taiwan provides a hospitable environment for business operations. In the area of land
costs, the lower the cost of leasing commercial office building space, the lower the
expenditures for business operators.

In the second quarter of 2018, the average monthly lease price of grade A office
space was NT$2,711 per ping and the vacancy rate was 9.53%. In the second quarter
the primary tenants of grade A office space where from the technology, biotech, and
finance industries, and were mostly from international backgrounds.
In the second quarter of 2018, the average monthly lease rate for grade B office
space was NT$ 1,751 per ping and the vacancy rate was 5.76%. The typical period
of commercial rental contracts is 2 to 3 years, and rent increases are 3% to 5% per
year. The area for land and buildings is measured in "pings"(approximately 3.3 square
meters). Rent is usually figured on a monthly basis and building management fees,
cleaning fees, and energy fees are calculated separately.

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