Seoul logistics rents rise modestly as dry storage vacancy eases

The vacancy rate for dry storage declined to 13% in 2025.

Rents for logistics space in the Seoul Metropolitan Area (SMA) edged higher in 2025 as the leasing market showed early signs of recovery, although tenants continue to hold significant negotiating power, according to Savills.

Research from Savills found that among logistics centres with gross floor area exceeding 33,000 sq m, average face rents reached KRW33,400 per pyeong for dry storage and KRW60,800 per pyeong for cold storage in 2025.

Dry storage rents rose about 3% year-on-year, while cold storage rents remained largely flat, reflecting uneven demand across the sector.

Vacancy trends also diverged between the two segments. According to Savills, the SMA vacancy rate for dry storage fell to 13% in 2025, reversing the peak recorded in 2024 as resilient leasing demand combined with a sharp slowdown in new supply entering the market.

However, cold storage vacancy remained elevated at around 36%, broadly unchanged from the previous year. The report noted that while some occupiers taking up dry storage space have also leased limited cold storage capacity, facilities with a high proportion of cold storage continue to face leasing challenges.

Despite signs of recovery, the leasing environment remains favourable for tenants. Savills said rent-free periods for dry storage average one to two months per year, while cold storage landlords are offering three to five months of incentives.

The consultancy added that aggressive incentives remain common across both newly completed projects and existing vacant buildings, particularly in the cold storage segment where landlords are increasingly offering additional concessions to secure tenants.