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September 2021 | Korea Logistics Market

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Korea Logistics Market

Logistics investment trends and strategic occupier movements

Insights & recommendations

 

Since the COVID-19 outbreak in 2020, Korea’s e-commerce market has expanded, driving growing interest in logistics investment. Major tenants of large logistics centres , e-commerce operators, couriers, and distributors are all focusing on setting strategies to build optimized logistics centre infrastructure for fulfillment and last mile delivery. Investment in cold storage facilities for fresh food delivery is rising. Also, cold storage tenants are demanding more efficient operation strategies, aided by new technology.

 

  • As development permits become more difficult to obtain, and as competition for developable sites intensifies, we expect further rises in land prices.
  • We recommend investors focus on developing logistics centres that meet tenant specifications, to ensure quick lease up periods.
  • We recommend investors actively use value added strategies to procure older, licensed logistics centres for redevelopment.
  • We expect competition among investors to lead to continued growth in logistics transactions, and for cap rates to remain at or below 4%.

 


Korea Logistics Market

September 2021 | Korea Logistics Market

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Judy Jang

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Judy Jang has joined Colliers International Korea as Associate Director of Research & Advisory Services in March 2018. She is responsible for research outputs and will play a major role to drive a more client-oriented research approach to support business win rate.

Judy has over 13 years of experience in real estate business and 6 years in IT industry. Prior to joining Colliers, she has served as a Head of Research for 7 years in Cushman & Wakefield Korea. She also had worked at Golden Bridge Property Management (Vanguarz Asset), Polaris HQ, LAN bird Technology Company, and Alibaba Korea.

 

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Rob is also a member of the Colliers International Asia Leadership team.

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Jay Cho

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Jay is currently the Head of Colliers’ Office & Industrial Services team in Korea. he has over 15 years of real estate market experience in Seoul for many years he has been focused on Tenant Representation. Strong experience in working on a range of both Korean domestic firms. With a proven track record in real estate field as a Senior director, He has successfully nurtured and developed lasting business relationships with a wide range of clients from institutional investors to individual landlords, developers and local conglomerates. Based on the well-maintained relationships, he has successfully closed multiple deals with various projects as indicated on the right, including financial services clients.

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Harold Lee

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Harold Lee has been active in the Korea and Overseas capital & investment sector for over 14 years and his professional experience in the market includes real estates and other real assets.

Prior to joining Colliers, He was a managing director at investment banking group of Hana Financial Investment where he played a key role in growing Hana's overseas real estate business. He led over $1 billion of real estate transactions globally.

Before joining Hana, he was a portfolio manager at major asset management companies in Korea such as Korea Investment Management and DB Asset Management, where he was responsible for managing funds with combined AUM of over $1 billion with a focus on overseas investments.

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