TAIPEI 101 TOWER

Marketing and Managing
The World’s Tallest Building
TAIPEI 101 TOWER
Cathy Yang
IFMA Annual Conference
Nov. 11, 2008 Prague

Topics
• Introduction of TAIPEI 101
• Marketing and Leasing Efforts
• Property Management Issues
• Current Operation
• TAIPEI 101 Observatory
• Looking forward

TAIPEI 101

Honours and Records
• Newsweek nominated new World’s 7
Wonders
• Discovery Channel first of 7 Wonders of
Engineering
• Guinness Book of World Record for
elevator speed at 1,010 meters / minute
• Council on Tall Buildings and Urban
Habitat
Tallest Building at 508 meters
Tallest Habitable Fl of 101F at 438 M
Tallest Roof at 448 M

Before TAIPEI 101 in 1997

Creating a new CBD

Major Milestones
Jul. 1997 70-Year Land Use Right
Jul. 1999 Construction Started
Nov. 2003 Mall Opening
Dec. 2004 Tower Opening
Apr. 2005 First Tenant moved in

Design Concept
Bamboo Pagoda
Cultural elements

Design Challenges

Solutions
380 piles Mega structure & columns Wind damper

Vertical Transportation
• Total 50 elevators in the tower
• 2 sky lobbies
• Double deck system
• Average waiting time 30 seconds
• High speed lifts / 3 service lifts
• Very intelligent elevators

Technical Specifications
• 24/7 operation for financial institutions
• State of the art telecommunication
infrastructure
• Fully back up power supply systems
• Air conditioning and air quality
• Energy Management and Control System
• Security system and Visitor Access Control
System
• Double low E glass curtain wall
• Fire prevention / smoke exhaust / refuge
room

TAIPEI 101 Site Plan
Shopping
Mall
Office Tower
Lot Size
• 30,277 sq m
Building Height
• 508 m
Tower Leasable Area
• 198,000 sq m
Shopping Mall Area
• 77,000 sq m
Estimated
Office Workers
• 10,000 ~ 12,000 people

1F Grand Lobby

1F Amenities

Transfer Lobby

Corridors & Stairs

Building Usage
• 101F Private Function Floor
• 92 ~ 100F Communication Floors
• 88, 89 & 91F Observatory
• 85F & 86F Restaurants
• 84F Multifunction Floor
• 9 ~ 83F Office Floors
• 35/36F & 59/60F Sky Lobbies
• B1 & 6F Shopping Mall
• B2 ~ B5 Car Park

35F Amenities
Espressamente
Service Center
Smoking Room
Courier & Laundry
Café & Florist
Convenience Store

36F Conference Center

Marketing and Leasing Efforts
• Appointing lead agent
• Preparing marketing collaterals
• Gathering market intelligence
• Leasing Strategy
• Overcoming doubts and queries
• Media relations
• Promotional events and functions
• Site visits
• Unfavorable economic environment
• Competing with ourselves
• Realistic and flexible leasing terms
• Stacking Plan

The Uninterrupted View

Tenant Mix
Size
% of
Area
No. of
Tenants
Target
No.
Below 1000 sm 15 59 80
1000-2300 sm 18 18 35
Above 2300 sm 26 10 12
Above 10000 sm 41 4 4
Total 100 91 131
Industry No. of Tenants %
Financial related 42 45
Manufacturing 10 12
Retail 17 19
High tech 9 11
Consulting 13 13
Total 91 100
Floor plate Areas 2,300~4,000sm
Efficiency Ratio 60%
Slab to Slab Height 4.20 m
Clear Ceiling Height 2.80 m

Leasing Result
NT$3,350
NT$3,200
NT$3,050
NT$2,900
NT$2,750
NT$2,600
NT$2,450
NT$2,300
NT$2,150
NT$2,000
05
Q1
05
Q2
05
Q3
05
Q4
06
Q1
06
Q2
06
Q3
06
Q4
07
Q1
07
Q2
07
Q3
07
Q4
08
Q1
08
Q2
90%
80%
70%
60%
50%
40%
30%
20%
10%
Building Average Rent Market Average Rent Occupancy Ratio
0%

Property Management Issues
• Industry Situation:
•Owner manager with min. management
efforts and cost conscious
•No service providers from outside
•Few professionals in the field
• Mission:
• Provide int’l standard services
• Set industry benchmark
• Nurture elite professionals for Taiwan

Property Management Issues
• Hiring professional property management
consultant during construction stage:
• Design review from manager’s perspective
• Operation cost saving measures
• Building material selection
• Additional amenities
• Management Structure
• Form J/V with int’l firm to manage
• Contract to an int’l firm to manage
• Retain an int’l firm as consultant
- cost concern
- build up own team
- build up own core competence
- local practice and condition

Property Management Issues
• One manager on site 1 year before
Mall opening
• Two managers on site 1 year before
Tower opening
• 2 year period:
• Set up organization and JD
• Hire suitable staff
• Take over from contractors
• Defect liability period
• SOP in place

Operating Expenses
Items Ratio
P & A 23%
Environment 17%
Security 10%
Maintenance 41%
Misc. 9%
Total 100%
• Management fee at US$2.57/sm/mn
• Total annual operating cost around US$4,800,000
• Breakeven when occupancy reaches 85%

Differentiated Management Services
• Bilingual concierge in the lobby
• Tenant service center
• Comprehensive fit-out guide/tenant
handbook
• Orientation program
• Regular meetings with tenants
• 24 hour call center
• Night shift duty manager

Current Operation
• Most prestigious office building
for highest rental
• Currently 91 companies moved in
• Close to 10,000 people in the
building, about 1500 visitors a
day
• Successful Shopping Mall
• Culture / Fashion events and
exhibitions
• Observatory restaurants hottest
dining place

Managing Landmark Building
• High profile / high visibility
• Public relation and media relation
• Corporate social responsibility
• Viewed as Public Asset
• Demand quality & high standard on
every aspect
• Creativity and Pioneering

TAIPEI 101 Observatory
• World’s fastest elevator at 1010M per
minute
• World’s largest passive wind damper,
the only one exposed
• Most popular tourist site, over 1 million
visitors a year
• Souvenir sale exceeds expectation
• Specialty shops – red coral, jade,
Gold sculpture

Looking Forward
• Increasing rental level
• Cost saving, energy saving while
maintaining in good condition
• Equipment replacement funds
• Maintain a highly motivated team
• Tenant services and additional benefits
• Capitalizing on the brand and creating
other revenues

Thank You
Welcome to Taipei
And TAIPEI 101