2018韩国汉城写字楼租户普查报告（英文版）_24页-2mb

2018 SEOUL OFFICE TENANT PROFILE Summary

Core Content Overview

This report provides an analysis of office tenant composition in Seoul's major business districts for the year 2017. It highlights the trends in occupancy rates, tenant classifications, and the impact of market dynamics such as the rise of co-working spaces and the shift in industry presence.

Key Findings: Three Major Business Districts (CBD, GBD, YBD)

• Leasable Assets: 76.3% of Grade A office buildings in the three major business districts were leasable, an increase of 2.2% compared to the previous year, driven by the disposal of properties by owner-occupiers.
• Tenant Proportions:
  • The proportion of space occupied by local conglomerates (chaebol) decreased by 2.5% pt, while non-conglomerates and the public sector increased by 1.3% pt and 1.2% pt, respectively.
  • The GBD saw an increase in the proportion of space occupied by conglomerates due to an inflow from other districts, making it the only district with such an increase.
• Retail Space Growth: The proportion of retail space in Grade A office buildings increased by 0.4% pt y-o-y, due to ongoing conversion of lower office floors to retail.
• Industry Trends:
  • The Finance and Insurance sector increased its office space usage by 3.0% pt, driven by flight-to-quality and expansion of FinTech companies.
  • The Real Estate sector also showed a 1.0% pt y-o-y increase in occupied space, attributed to the rapid growth of the co-working industry, with the GBD recording a 2.1% pt growth in real estate-related firms.
• Co-Working Presence: Co-working operators occupy 1.2% of Grade A & B office space in Seoul, with the CBD having the highest proportion at 2.3%, followed by the GBD (0.8%) and YBD (0.5%).

Key Findings: Pangyo & Sangam DMC

• Pangyo Technology Valley:
  • The Information and Communications sector occupied 36.8% of the office market, up from 35.5% in 2016.
• Sangam Digital Media City:
  • Despite an increase in total space occupied by the Information and Communications sector, the inflow of manufacturing tenants from other districts led to a slight decrease in the sector's proportion of total space. However, IT firms still occupy around 50% of the district.

Percentage of Space Used by Each Industry in Business Districts

• The Finance and Insurance sector was the largest user of office space in all districts, with the highest proportion in the YBD (49.7% in 2017).
• Manufacturing remained a significant user in all districts, particularly in the GBD and YBD.
• Information and Communications was the third-largest user in Seoul and the CBD, and the fourth in the GBD and YBD.
• Professional, Scientific & Technical was a major user in the GBD and YBD, with a smaller presence in the CBD.
• Wholesale & Retail increased its share in the GBD and YBD.

Tenant Classification by District

• CBD:
  • Local tenants accounted for 80.9% of the total, while foreign tenants made up 19.1%.
  • The public sector occupied 13.8% of the space.
• GBD:
  • Local tenants occupied 72.9% of the space, with foreign tenants at 27.1%.
  • The public sector occupied 8.2%.
• YBD:
  • Local tenants occupied 85.6%, and foreign tenants 14.4%.
  • The public sector occupied 18.4%.
• Pangyo:
  • Local tenants occupied 92.6%, and foreign tenants 7.4%.
  • The public sector occupied 2.9%.
• Sangam:
  • Local tenants occupied 95.2%, and foreign tenants 4.8%.
  • The public sector occupied 18.7%.

Office & Retail Space Proportions

• The GBD and YBD showed a stronger increase in retail space compared to the CBD, with the GBD seeing the most significant rise (1.7% pt).
• CBD had a marginal increase in retail space (0.2% pt), while Pangyo saw a notable increase (1.7% pt).

Major Trends

• Foreign tenant presence increased slightly in some sub-districts, indicating growing international interest in Seoul's office market.
• Co-working operators are a growing presence, particularly in the CBD, with their space proportion increasing.
• Chaebol occupancy decreased in the CBD and GBD, but increased slightly in the GBD due to inflow from other districts.
• Non-chaebol and public sector tenants saw increases in their space proportions across all districts.

Methodology

• The study included 395 Grade A and B office buildings across five major business districts.
• 100 Grade A buildings were analyzed separately.
• Self-use buildings were defined as those where landlords and their subsidiaries occupied more than 70% of the GFA.
• Leasable buildings were those with more than 30% of their space leased.
• Industry classification was based on the National Statistics Office of South Korea.

Appendix: Industry Classification Details

1. Agriculture, Forestry & Fishing
2. Mining and Quarrying
3. Manufacturing
4. Electricity, Gas, Steam & Water Supply
5. Sewage, Waste Management, Renewable Materials & Environmental Remediation
6. Construction
7. Wholesale and Retail Trade
8. Transportation and Logistics
9. Accommodation and Food Services Activities
10. Information and Communications
11. Financial and Insurance Activities
12. Real Estate-Related Activities
13. Professional, Scientific & Technical Activities
14. Business Facilities Management and Business Support
15. Public Administration, Defense & Social Security
16. Education
17. Human Health & Social Welfare
18. Arts, Sports & Recreational Services
19. Membership Organizations, Repair & Other Personal Services
20. Hiring Activities within Households and Production Activities for Self-Consumption
21. Activities by International and Foreign Organizations