Three main business districts

Among Grade A office buildings located in Seoul’s three major business districts, 76.3% were identified as leasable assets, a 2.2%pt increase from the previous year. The disposal of properties by several owner-occupiers resulted in more office buildings being made available for lease.

The ongoing trend for landlords to convert lower office floors to retail space led to an increase in the proportion of retail space in Grade A office buildings to 13.7%, representing growth of 0.4%pt y-o-y.

Co-working operators occupy a total of 1.2% of space in Grade A&B office buildings in Seoul. Their main presence is in the GBD, where they account for 2.3% of total leased space, followed by 0.8% and 0.5% in the CBD and YBD, respectively.

Sub-districts; Pangyo & DMC

The IT and communications sector continued to display solid leasing demand, registering growth of 1.3%pt
y-o-y and now occupying 36.8% of the Pangyo office market.

In Sangam DMC, despite an increase in the total space taken up by the IT and communication sector last year, the inflow of manufacturing related tenants from other districts led to a decrease in its total proportion of occupied space. Nevertheless, IT firms still occupy around 50% of total space in the district.