Vacancy is stabilizing due to strong demand for office relocations and the expansion of tech tenants
Insights & Recommendations
In Q1 2021, private sector relocation decisions postponed from the previous year led to a rise in leasing demand and stabilization in vacancy rates. Tech tenants expanded significantly and were a driver of overall leasing demand.
- With decreasing new supply in the market, we advise occupiers to leverage tenant-favourable market conditions and negotiate longer leases and rent-free periods.
- As tech tenants continue to prefer the Gangnam submarket where vacancy is the lowest, we recommend that tenants who want better rental conditions and incentives should consider relocating to the CBD or YBD areas instead of the GBD area.