Seoul CBD office vacancy to hit up to 10% this year

Prime office vacancy is expected to rise as supply and relocations increase.

Seoul’s prime office vacancy rate is expected to rise to 5–7% in 2026, driven by new supply and tenant relocations, according to Savills.

Savills forecasts the Central Business District (CBD) will see the sharpest increase, with vacancy projected to reach 8–10%. This will be led by relocations and downsizing among major occupiers including SK Group and Hana Financial Group, alongside anticipated tenant departures and the completion of new prime office developments.

Despite the near-term rise, Savills noted that prime buildings delivered since 2015 have historically required around one to 1.5 years to stabilise, suggesting vacancy levels could ease from 2027.

In contrast, the Gangnam Business District (GBD) is expected to remain the most stable submarket, with vacancy forecast at 2–3% in 2026, following a low 1.7% rate at end-2025.

In the Yeouido Business District (YBD), Savills said vacancy is projected to hold at 3–5%. Upcoming space from tenant departures — including GC Biopharma at Parc.1 Tower 2 and LG Corporation and its affiliates at Parc.1 Tower 1 — is expected to be partially offset by new occupiers. These include NH Capital, the Korea Fire Insurance Association and the Korea Insurance Research Institute at One Centinel.

Savills said landlord-favourable conditions seen since 2021 are beginning to moderate. Face rent growth is expected to slow to 2–4% in 2026, while tenant incentives are likely to increase, particularly for buildings facing elevated vacancy or slower leasing.

Maintenance fees are projected to rise by 2–3%, slightly above the inflation forecast of 2.1% and broadly in line with recent increases, the report added.