Seoul prime office vacancy rate falls to 3.3% in Q3

All major districts in the city saw declines in vacancy rates.

According to a Savills report, the total net absorption recorded across the three major districts of Seoul prime offices in Q3 2022 was 117,300 sqm, with vacancy rate down 1.6 percentage points QoQ to 3.3%. 

Vacancy rate fell across all districts, with CBD down 2.4 percentage points to 5.4%, Gangnam Business District (GBD) down 0.4 percentage points to 1.2%, and Yeouido Business District (YBD) down 1.8 percentage points to 2.2%. 

Here’s more from Savills:

Net absorption for CBD came in at 77,400 sqm. Hyundai Capital relocated from its Yeouido HQ to 11 floors of Grand Central Tower A (22,700 sqm). Moorim Capital expanded from Hanwha Sogong Building to D Tower (900 sqm -> 2,100 sqm). In addition, several tenants moved to CBD from GBD due to lack of available space. British American Tobacco Korea downsized from Gangnam Finance Center to Center 1 in CBD (5,500 sqm -> 3,300 sqm), while SG AMC and Toyota Motors Korea also moved to CBD prime office. 

For GBD, net absorption was 9,800 sqm and vacancy rate at 1.2%, the lowest among the major districts. AWS (Amazon Web Services) and MOLOCO, an artificial intelligence ad-tech startup, moved into Centerfield, while Dplanex, a data analysis specialised corporation of Kyobo Life Insurance, moved into Kyobo Gangnam Tower. Limited vacancies in GBD have led to any new vacancies to be backfilled as they occur usually within the same quarter.

In YBD, as tenants move in on previously signed leases, vacancy rate fell to 2.2%, a bottom since Q2/2010. Parc.1 Tower1 welcomed new tenants Sangsangin Investment & Securities (6,800 sqm) from Samsung Life Daechi Tower, and a new division of Apple Korea (1,700 sqm). Tenants such as system software developer OKESTRO, Leading Investment & Securities and SK SIGNET all moved into Parc.1 Tower2.