2018年韩国汉城写字楼租户普查报告（英文）_24页-2mb

2018 SEOUL OFFICE TENANT PROFILE Summary

Core Content Overview

This document provides an analysis of the tenant composition in Seoul's major business districts, including the Central Business District (CBD), Gangnam Business District (GBD), and Yeouido Business District (YBD), as well as the sub-districts of Pangyo Technology Valley and Sangam Digital Media City (DMC). The report includes statistics on the percentage of office space occupied by different industries, tenant types (local, foreign, chaebol, non-chaebol, public), and the impact of market trends on office and retail space distribution.

Key Findings

Three Major Business Districts

• Leasable Assets Increase: Among Grade A office buildings in the three major districts, 76.3% were identified as leasable assets, up by 2.2% from the previous year. This increase was attributed to the disposal of properties by several owner-occupiers.

• Tenant Composition Shift:

  • The proportion of space occupied by local conglomerates (chaebol) decreased by 2.5% pt.
  • Non-conglomerates and the public sector increased by 1.3% pt and 1.2% pt, respectively.
  • Despite an increase in total space taken by chaebols, their overall proportion declined due to the growth in other sectors.

• Retail Expansion: The proportion of retail space in Grade A office buildings increased to 13.7%, up by 0.4% pt y-o-y, due to the ongoing conversion of lower office floors to retail.

• Sector Growth:

  • The Finance and Insurance sector increased its share of office space by 3.0% pt, driven by consolidation and expansion.
  • The Real Estate sector also saw a 1.0% pt increase in its proportion of occupied space, fueled by the co-working industry's expansion. The GBD recorded a 2.1% pt increase in real estate-related firms.

• Co-working Presence: Co-working operators occupy 1.2% of total Grade A & B office space in Seoul. The CBD has the highest concentration at 2.3%, followed by the GBD at 0.8% and the YBD at 0.5%.

Pangyo & Sangam DMC

• Pangyo:

  • The Information and Communications sector saw a 1.3% pt increase in leasing demand, now occupying 36.8% of the office market.

• Sangam DMC:

  • The Information and Communications sector had an increase in total space last year, but the inflow of manufacturing tenants led to a decrease in its proportion.
  • IT firms still account for about 50% of the total space in the district.

Tenant Classification by District

• CBD:

  • Leased Space: 82.8% (up 2.0% pt from 2016)
  • Chaebol: 35.6% (down 7.0% pt)
  • Non-chaebol: 56.2% (up 4.0% pt)
  • Public: 8.2% (up 3.0% pt)
  • Foreign Tenants: 25.5% (up 0.6% pt)
  • Local Tenants: 74.5% (down 0.6% pt)

• GBD:

  • Leased Space: 80.6% (up 1.0% pt)
  • Chaebol: 35.7% (up 3.7% pt)
  • Non-chaebol: 61.9% (down 3.1% pt)
  • Public: 2.4% (down 0.6% pt)
  • Foreign Tenants: 31.2% (down 0.7% pt)
  • Local Tenants: 68.8% (up 0.7% pt)

• YBD:

  • Leased Space: 90.3% (up 0.5% pt)
  • Chaebol: 35.9% (down 0.6% pt)
  • Non-chaebol: 45.7% (up 0.4% pt)
  • Public: 18.4% (up 0.2% pt)
  • Foreign Tenants: 14.4% (down 0.6% pt)
  • Local Tenants: 85.6% (up 0.6% pt)

Top Five Industries by District

• SEOUL:

  1. Finance & Insurance (34.3% in 2017)
  2. Manufacturing (20.2% in 2017)
  3. Information & Communication (9.4% in 2017)
  4. Professional, scientific & technical (8.9% in 2017)
  5. Wholesale & retail (5.8% in 2017)

• CBD:

  1. Finance & Insurance (35.6% in 2017)
  2. Manufacturing (12.0% in 2017)
  3. Information & Communication (9.5% in 2017)
  4. Professional, scientific & technical (8.4% in 2017)
  5. Public administration and defence (6.6% in 2017)

• GBD:

  1. Finance & Insurance (24.6% in 2017)
  2. Manufacturing (19.5% in 2017)
  3. Professional, scientific & technical (15.2% in 2017)
  4. Information & Communication (10.8% in 2017)
  5. Wholesale & retail (9.5% in 2017)

• YBD:

  1. Finance & Insurance (49.7% in 2017)
  2. Manufacturing (18.3% in 2017)
  3. Information & Communication (7.8% in 2017)
  4. Professional, scientific & technical (6.1% in 2017)
  5. Wholesale & retail (5.5% in 2017)

Sub-Districts (Pangyo & DMC)

• Pangyo:

  • Leased Space: 58.8% (down 0.6% pt)
  • Chaebol: 19.6% (up 0.6% pt)
  • Non-chaebol: 77.5% (down 0.6% pt)
  • Public: 2.9% (unchanged)
  • Top Industries: Information & Communication (36.8%), Manufacturing (20.8%), Professional, scientific & technical (16.5%)

• DMC:

  • Leased Space: 53.5% (down 2.9% pt)
  • Chaebol: 21.6% (down 0.7% pt)
  • Non-chaebol: 59.7% (up 1.5% pt)
  • Public: 18.7% (down 0.8% pt)
  • Top Industries: Information & Communication (48.7%), Manufacturing (9.0%), Finance & Insurance (8.3%)

Key Trends and Observations

• Office vs. Retail Space: Retail space in Grade A buildings increased, with the GBD showing the most significant growth (2.1% pt).
• Co-working Operators: Their presence is mainly concentrated in the CBD, with a growing demand in the GBD.
• Chaebol Movement: Chaebols moved into the GBD from other districts, increasing their share of space in that area.
• Foreign Tenants: There was a marginal increase in the proportion of foreign tenants in the CBD, but a decline in the YBD.
• Tenant Growth: The proportion of tenants in all districts increased due to the conversion of owner-occupied buildings into leasable assets.

Methodology

• The study was conducted by CBRE Research Korea in Q4 2017, profiling office tenants across five major districts in Seoul.
• It included 395 Grade A and B office buildings across the CBD, GBD, YBD, Pangyo, and DMC.
• 100 Grade A buildings were analyzed separately.
• Buildings were limited to leasable office space and headquarters. Self-use buildings (where landlords and their subsidiaries occupy more than 70% of the GFA) were excluded.
• Data was based on the Gross Floor Area (GFA) and included only the first floor and above, excluding basement and ancillary spaces like parking lots, arcades, control rooms, and lobbies.
• Chaebols were defined as "Business groups subject to limitation on cross-shareholding" by the Fair Trade Commission.
• Industry classifications were based on the National Statistics Office of South Korea.

Conclusion

The report highlights a dynamic shift in tenant composition and space utilization across Seoul's business districts, emphasizing the growing role of the finance, insurance, and real estate sectors, along with the increasing presence of co-working operators and the movement of chaebols into the GBD. The CBD remains the most dominant in terms of leased space and tenant diversity, while the YBD shows the highest proportion of local tenants. Retail space is expanding, particularly in the GBD, as landlords convert lower floors to retail. The overall trend indicates a move towards more flexible office spaces and a shift in the dominance of traditional tenant types.