- As in 2017, 2018 saw numerous cases of owner-occupiers disposing of headquarters buildings in Seoul’s three major business districts. The proportion of leasable space in Grade A office buildings consequently increased by 4.7%pt y-o-y, to 80.9%. The proportion of leasable space in the overall office market increased by 2.4%pt y-o-y, to 68.9%.
- The proportion of Grade A office space in the CBD and GBD occupied by conglomerates increased by 1.4%pt y-o-y and 2.2%pt y-o-y, respectively, in 2018. However, the figure for the YBD declined by -6.2%pt y-o-y, due to several major companies relocating from the district.
- Flexible office operators occupied 2.5% of Grade A office space by the end of 2018, an increase of 0.8%pt y-o-y. Their presence was highest in the GBD, at 3.3%, but the CBD led in terms of growth (+0.7%pt y-o-y).
- Approximately 15% of space in Seoul’s Grade B office buildings was allocated to serve retail functions in 2018, a rise of 1.3%pt y-o-y. The increase reflects landlords’ continued attempts to reduce vacancy arising from flight-to-quality relocations, with converting lower office floors to retail remaining a popular strategy.
- Flexible office operators also added to their Grade B office footprint in 2018, occupying 1.5% of Grade B office space in Seoul by the end of the year, an increase of 0.8%pt y-o-y.