Seoul prime office net absorption reaches 3,700sqm in Q1

The YBD drove the market’s positive net absorption.

In Q1/2025, Seoul’s prime office market recorded a net absorption of 3,700 sqm, according to data from a Savills report.

While the CBD and GBD area saw a decrease in take-up by 20,000 sqm and 12,800 sqm respectively, the report added that this was offset by large block vacancies filled in YBD - particularly at Anchor One (Brighton Yeouido) and One Centinel (formerly Shinhan Securities Tower) – resulting in positive net absorption for the overall market.

Here’s more from Savills:

The vacancy rate in the CBD rose 0.7%p QoQ to 3.5%, primarily due to major tenants like HK Inno.N (c. 8,300 sqm) and Kakao Entertainment (c. 4,900 sqm) relocating to Pangyo. Some of the vacant space left by 11st’s move to Gwangmyeong in late 2024 was absorbed by new public-sector and foreign corporate tenants.

GBD’s vacancy rate increased by 0.6%p to 2.8%, which was the lowest level among the three core districts. Notable take-up included Krafton’s 7,300 sqm expansion in Centerfield West, as well as new leases by Mirae Asset Securities PB Center at Parnas Tower and Toss Income at POSCO Tower Yeoksam.

YBD was the only district to see a decrease in vacancy, down 1.9%p QoQ to 4.1%.KB Kookmin Bank leased 21,000 sqm in Anchor One and One Centinel achieved approximately 30% occupancy after remodeling, with new tenants including Mirae Asset Life (TFT), Woori Investment, Hyundai Motor Securities (TFT), and Sentbe.

In Q1, 34% of new take-up was attributed to upgrade activities from secondary to prime office property, mainly driven by KB Kookmin Bank’s relocation from its former data center in Yeomchang-dong, Gangseogu, to Anchor One in YBD. New leases accounted for 32% of absorption, largely due to financial firms moving into One Centinel. Prime-to-Prime relocations and expansions represented 18% and 16% of total take-up, respectively.