Despite the low demand for traditional industries, the office market was stable due to the flexible workspace operators’ expansion demand.
Seoul is still favourableto tenants. However, as the demand for flexible work space has increased and the supply decreased, we expect that the time to turn into a landlord favor market probably will come sooner than expected. The flexible workspace market continues to expand. Flexible workspace is no longer a disruptor, nor a complementary sub-sector to the office market. It is a fundamental part of the commercial real estate market in Korea. The expansion of the flexible workspace has an influence not only on the office leasing market but also on the transaction market. Flexible workspace is also used as a means to raise the value of buildings in order to close sales successfully. Landlords use flexible workspace as a tool to cut vacancy. They should choose operator partners and plan future strategies carefully to exploit the concept more successfully.