Seoul prime office net absorption down 5,900sqm in Q2

GBD was the only district to record positive net absorption.

According to a Savills report, in Q2/2025, net absorption in Seoul’s prime office market declined by 5,900 sq m. The CBD and YBD recorded negative net absorption of 15,600 sq m and 3,200 sq m, respectively.

“The GBD was the only district to post positive net absorption, totaling 13,000 sq m, largely driven by the BoK’s relocation to nearby prime offices amid the reconstruction of its Gangnam headquarters,” the report added.

Here’s more from Savills:

In the CBD, the vacancy rate declined by 0.6 ppts QoQ to 4.0% in Q2/2025. Korean Reinsurance Company relocated to Signature Tower(10,000 sq m),while PU Core, a chemical manufacturer spun off from SKC, leased c. 2,000 sq m at Grand Central. Meanwhile, Starbucks Korea vacated 7,200 sq m at State Tower Namsan, and Shinsegae I&C exited KCCI and other buildings. Both companies relocated to Centerfield in GBD. Additionally, T-Map Mobility moved to SK-C Tower in Chungmu-ro, leaving 6,300 sq m vacant at Daishin Finance Center.

The relocation of manufacturing companies from the CBD contributed significantly to the decline in net absorption across the three major districts. KOS and Jeonju Paper vacated KCCI, leaving 2,900 sq m and 1,500 sq m,respectively. Additionally, Hanon Systems relocated from Ferrum Tower(3,200 sq m)to another district.

The GBD continued to record the lowest vacancy rate among the three major districts, declining by 0.5 ppts QoQ to 2.3%, underscoring sustained tenant demand. At Centerfield, Starbucks Korea and Shinsegae I&C backfilled approximately 18,500 sq m of space previously vacated by SSG, which relocated to KB Yeongdeungpo Tower. At the Icon Samsung building, the vacancy rate dropped from 40% to 10%, supported by the newly filled occupancy by BoK and iMarketKorea. In addition, companies based in the GBD such as Craver Corporation, BENOW, and Viva Republica either expanded or newly leased adjacent offices, further contributing to the downward trend in vacancy.

In the YBD, the vacancy rate rose by 0.2 ppts QoQ to 4.3%, primarily driven by DL Construction’s temporary relocation from FKI Tower to Donuimun D-Tower, leaving behind a sizeable vacancy of 10,300 sq m. DL Construction is scheduled to move to Magok One Grove later this year, along with its affiliate, DL E&C.

In Q2/2025, 44% of take-up was attributed to prime-to-prime relocations, involving major tenant movements such as Starbucks Korea, iMarketKorea, and KB Real Estate Trust. This was followed by secondary-to-prime relocations, which accounted for 28% of takeup, primarily driven by relocation related to headquarters reconstruction, including those of Korean Reinsurance and the Bank of Korea’s Gangnam branch. The remaining demand came from office expansion (20%) and new entrants to the prime office market (8%).