Gangnam area vacancy rate plunged to 1.4% in Q3 2021 due to continued demand from tech tenants
Insights & recommendations
With the expansion of global big tech companies and rapid growth of Korean tech startups centered in the GBD area, vacancy in all districts in Seoul decreased in Q3. In particular, vacancy in Grade A offices in the GBD area plummeted to its lowest rate since 2010 due to major tenant contracts in prime GBD buildings such as the CenterField Building and the Asset Tower
- The market cycle is changing from a tenant-favored market to a landlord-favored market as tech tenants continue to expand and the volume of new office supply decreases
- We recommend tenants consider the CBD and YBD instead of the GBD which lacks vacant space. In addition, tenants should begin securing additional space now by renewing existing contracts before landlord incentives, such as rent-free periods, decrease even further