seoul office leasing
TRANSCRIPT
Monthly Market Review
Seoul Office Leasing
May 2021
©2019 OKEY OfficeKeyThe contents of this proposal are intended for the individuals to whom it is presented or delivered and their company associates. Any dissemination or replication, without the express authorization of OKEY Office Key, is strictly prohibited.
Target Areas
Target Samples
Survey Method
Main Focus
Survey Period
DB Management
All districts in Seoul and Pangyo & Bundang districts
Commercial properties of 4 stories or more, and with a gross floor area of 1,000㎡ ( =300py) or more
Telephone enquiry, publications from property management and Korea’s government
Market trend in a property industry, changes in vacancy rate and tenants’ inflow/outflow etc.
One calendar month, April 2021
Okey Research Center has carried out our research with a large numbers of sample data and provided the vacancy and rent information of office buildings via our office lease platform ‘OKEY- Office Key’.
CBD GBD YBD ETC PBBDCentral Business District Gangnam Business District Yeido Business District Non Major Business District PTV-Bundang Business
District
Jongro-gu, Jung-gu, etc.
Gangnam-gu, Seocho-gu, etc.
Yeouido, Yeongdeungpo-guetc.
Pangyo Techno Valley, Bundang-gu in Sungnam-si etc.
P GradePrime Building
S GradeLarge Building
A GradeLarge-Medium
B GradeMedium-Small
C GradeSmall Building
OKEY
Gross Floor Area
Lease Area of Sample
Floor
Survey Overview
5 Regional Divisions in Seoul
Categories of Office Buildings by Their Sizes 49,587m2
(15,000py)
23,140m2
(7,000py)
13,223m2
(4,000py )
Above 3,3067m2
(Above 1,000py)
Under 3,306m2
(Under 1,000py)
1,653m2
(500py)
992m2
(300py)
661m2
(200py)
Above 496m2
(Above 150py)
Under 496m2
(Under 150py)
Monthly Market Review
Songpa, Mapo, Yongsan and other areas outside Central Seoul
Exchange Rate 1 USD = 1,123.30 KRW (0.89 USD = 1,000 KRW) as at 3 May 2021
Sample Size of Each Distirct
Monthly Market Review
The cost that 1m2 of GFA incurs to a tenant who rents the property. NOC can be useful to compare between different types of office buildings.
NOC (Net Occupancy Cost)
Gang-seo
Yang chunYeongDeungpo
Mapo
Eun-pyeng
Seodae-moon
Jong-ro
Jung-gu
Yong-san
Guemcheon
Gwan-ak
Dong-jak
Seocho Gangnam
Songpa
Gang-dong
Sung-dong
Gwang-jin
Jung-rang
Dongdae-moon
Sung-buk
Gang-buk
Do-bong
No-won
Bundang
Guro
Building Survey : Total 3,006
P S A B C
CBD 233 235 113 259 98
GBD 54 100 117 342 536
YBD 96 65 20 36 11
ETC 131 105 45 223 111
PBBD 20 28 6 13 3
PBBD(PTV-Bundang Business District)
• Sample Survey : 70• Total GFA : 1,857,075㎡
(561,765py)
ETC(Non Major Business District)
• Sample Survey : 615• Total GFA : 8,856,456㎡
(2,679,078py)
YBD(Yeouido Business District)
• Sample Survey : 228• Total GFA : 4,039,915㎡
(1,222,074py)
GBD(Gangnam Business District)
• Sample Survey : 1,149• Total GFA : 10,588,642㎡
(3,203,064py)
CBD(Central Business District)
• Sample Survey : 938• Total GFA : 7,786,069 ㎡
(2,355,286py)
6.38 %
Avg.Rent
Avg.Deposit
Avg.Management. Fee
21.73 270.12 6.92
The average vacancy rate of the office
buildings in Seoul is 6.38 % as at April
2021, and the average NOC is $ 49.28.
$ 49.28
Avg. NOCVacancy rate
SBDSeoul Capital Area
01
SBD Office Leasing Market
Vacancy Rate & NOC in Seoul and Each District
Vacancy Rate & NOC in Seoul & Each Building Category
49.2
8
74.1
6
58.5
1
50.5
7
41.5
8
34.4
4
6.4%5.3% 5.5% 5.9%
8.9%
14.0%
0.0%
5.0%
10.0%
15.0%
-
20.00
40.00
60.00
80.00
Seoul P S A B C
NOC Vacancy Rate49.2
8
57.6
2
46.1
4
58.6
7
38.9
3
42.5
8
6.4%
7.8%
5.7%
8.6%
4.9%
1.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Seoul CBD GBD YBD ETC PBBD
NOC Vacancy Rate
The following charts indicate the change of the vacancy
level in Seoul. The quality tenants such as aTium Corp.
and Yunda Express Ltd. moved into Joon Tower in CBD
which filled out the vacant units of 6,700㎡.
In GBD, there was a new supply of 5,700㎡ due to
Joonang Building having completed the extension work
to the building, whereas Ably Corp., the new tenant of
Kyobo Tower occupied the vacant units of 6,400㎡. On
the other hand, 337 Gangnamdaero Building had its
vacant units of 1,300㎡ filled out, thanks to Band & Link
Corp. and Medical Clinic Corp., both newly renting one
floor and four floors each in the building.
Insung Information Corp. also signed the lease contract
with Samjung Development Building and began renting
the vacant units of 8,500㎡ using over 7 floors in the
building. KG Engineering Ltd. moved from PNS Homes
Tower in Moonjung-dong to KG New Building, creating
new vacant space of 6,700㎡.
SBDSeoul Capital Area
01
SBD Office Leasing Market
Monthly Vacancy Rate in 5 Main Districts
Monthly Vacancy Rate for Different Size of Buildings
SBD 6.38%
CBD 7.76%
GBD 5.72%
YBD 8.63%
ETC 4.91%4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
11.00%
12.00%
13.00%
5 6 7 8 9 10 11 12 1 2 3 4
Total 6.38%
P 5.31%S 5.49%
A 5.92%
B 8.94%
C 13.96%
2.50%
4.50%
6.50%
8.50%
10.50%
12.50%
14.50%
16.50%
6 7 8 9 10 11 12 1 2 3 4
7.76 %
Avg.Rent
Avg.Deposit
Avg.Management. Fee
23.79 251.73 9.10
The average vacancy rate of the office
buildings in CBD is 7.76 % as at April
2021, and the average NOC is $ 57.62.
$ 57.62
Avg. NOCVacancy rate
CBD Central Seoul
02
CBD Office Leasing Market
Vacancy Rate & NOC in Central Business District (CBD)
Vacancy Rate & NOC for Different Sizes of Building in CBD
57.6
2
83.2
9
60.1
2
47.9
3
44.4
3
36.5
9
7.8% 7.4%6.3%
9.7%
11.7%
15.3%
0.0%
5.0%
10.0%
15.0%
20.0%
-
20.00
40.00
60.00
80.00
100.00
CBD P S A B C
NOC Vacancy Rate57.6
2
61.5
3
43.6
1
56.0
7
56.2
8
7.8%
6.6%
3.7%4.5%
6.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
CBD Gwanghwamoon
Station
City Hall Station Jonggak Station Euiljiro Ipgu Station
NOC Vacancy Rate
Avg.Rent
Avg.Deposit
Avg.Management. Fee
22.74 295.88 5.74
The average vacancy rate of the office
buildings in GBD is 5.72 % as at April
2021, and the average NOC is $ 46.14.
5.72 % $ 46.14
Avg. NOCVacancy rate
GBD Gangnam03
GBD Office Leasing Market
Vacancy Rate & NOC in Gangnam Business District (GBD)
Vacancy Rate & NOC for Different Sizes of Building in GBD
46.1
4
91.8
8
75.5
9
58.7
0
46.8
3
32.8
6
5.7%
3.6% 3.6%
6.3%6.9%
11.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
20.00
40.00
60.00
80.00
100.00
GBD P S A B C
NOC Vacancy Rate46.1
4
59.9
1
56.5
6
35.1
3
53.2
9
38.6
5
5.7%
3.9%
5.2%
2.0%
5.7% 5.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
GBD Teheranro Gangnamdero Yeongdongdero Dosandero Seocho Kyode
NOC Vacancy Rate
8.63 %
Avg.Rent
Avg.Deposit
Avg.Management. Fee
21.22 310.45 8.44
The average vacancy rate of the office
buildings in YBD is 8.63 % as at April 2021,
and the average NOC is $ 58.67.
$ 58.67
Avg. NOCVacancy rate
YBD Yueido &Yeongdeungpo
04
YBD Office Leasing Market
Vacancy Rate & NOC for Different Sizes of Building in YBD
Vacancy Rate & NOC in Yeongdeungpo Business District (YBD)
58.6
7
83.2
6
50.6
3
41.8
7
27.6
9
23.5
2
8.6% 9.3% 9.5%
4.9% 5.2%
26.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
-
20.00
40.00
60.00
80.00
100.00
YBD P S A B C
NOC Vacancy Rate58.6
7
75.4
7
32.7
3
37.0
6
8.6% 9.0%
4.2%
10.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-
20.00
40.00
60.00
80.00
YBD East Yeouido West Yeouido Youngdeungpo
NOC Vacancy Rate
4.91 %
Avg.Rent
Avg.Deposit
Avg.Management. Fee
16.89 235.11 5.24
The average vacancy rate of the office
buildings in ETC is 4.91 % as at April 2021,
and the average NOC is $ 38.93.
$ 38.93
Avg. NOCVacancy rate
ETC Other District in Seoul
05
ETC Office Leasing Market
Vacancy Rate & NOC in Other District in Seoul (ETC)
Vacancy Rate & NOC for Different Sizes of Building in ETC
38.9
3
43.9
5
43.5
2
39.9
3
32.4
6
41.2
6
4.9%
2.4%
5.6%
3.6%
14.1%
23.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-
10.00
20.00
30.00
40.00
50.00
ETC P S A B C
NOC Vacancy Rate38.9
3
36.1
9
31.3
4
36.3
3
34.7
4
55.3
5
51.9
6
4.9%
2.3%3.0%
4.7%
9.3% 8.8%
2.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
ETC Songpa,
Gangdong
Gwangjin
Sungdong
Mapo Sangam Guro Geumchun Gwanak Dongjak Yongsan
NOC Vacancy Rate
1.34 %
Avg.Rent
Avg.Deposit
Avg.Management. Fee
16.20 170.59 6.12
The average vacancy rate of the office
buildings in PBBD is 1.34 % as at April
2021, and the average NOC is $ 42.58.
$ 42.58
Avg. NOCVacancy rate
PBBD PANGYO &BUNDANG
06
PBBD Office Leasing Market
Vacancy Rate & NOC for Different Sizes of Building in PBBD
Vacancy Rate & NOC in Pangyo & Bundang Business District (PBBD)
42.5
8
54.5
1
40.7
3
30.8
1
38.4
3
21.7
8
1.3%
0.1%
1.7%
3.4%3.0%
10.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
PBBD P S A B C
NOC Vacancy Rate
42.5
8
49.4
1
40.5
5
1.3%
0.2%
2.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
PBBD PTV Bundang
NOC Vacancy Rate
Office Leasing Market
Market Submarket Gross Leasing Area Avg. Deposit Avg. Rent Avg. Mgmt. Fee Avg. NOC Vacancy rate
CBD
Gwanghwamoon Station 878,460 254.05 25.58 8.88 61.53 6.65%
City Hall Station 894,595 171.33 17.63 7.84 43.61 3.73%
Jonggak Station 1,001,435 236.30 23.28 9.16 56.07 4.47%
Euiljiro Ipgu Station 837,949 212.24 21.99 9.54 56.28 6.82%
GBD
Teheranro 3,396,687 307.85 26.05 8.02 59.91 3.92%
Gangnamdero 1,773,162 337.24 26.70 6.84 56.56 5.16%
Yeongdongdero 666,717 277.31 17.28 5.23 35.13 1.95%
Dosandero 277,327 453.55 29.36 6.32 53.29 5.73%
Seocho Kyode 401,947 279.50 20.96 4.29 38.65 5.72%
YBD
East Yeouido 2,892,528 271.82 25.96 10.64 75.47 8.95%
West Yeouido 480,763 123.37 11.66 6.79 32.73 4.24%
Youngdeungpo 666,624 489.38 16.29 4.69 37.06 10.37%
ETC
Songpa, Gangdong 2,088,371 229.24 16.07 5.31 36.19 2.31%
Gwangjin Sungdong 669,861 187.47 15.03 4.02 31.34 2.97%
Mapo Sangam 2,129,178 173.99 14.81 5.74 36.33 4.71%
Guro Geumchun 998,547 152.61 14.11 2.93 34.74 9.33%
Gwanak Dongjak 597,391 667.27 28.73 7.02 55.35 8.76%
Yongsan 1,303,345 274.64 21.97 7.45 51.96 2.52%
PBBD PTV 944,000 180.17 18.73 6.42 49.41 0.16%
Bundang 913,074 167.74 15.45 6.03 40.55 2.56%
OverallLease status