2018 SEOUL OFFICE TENANT PROFILE Summary
Core Content Overview
This document provides an analysis of office tenant composition in Seoul's major business districts and sub-districts for the year 2017. It includes data on industry distribution, tenant classification by domestic/foreign origin and organisational type, and trends in office and retail space usage across different districts.
Main Business Districts
- CBD (Central Business District)
- GBD (Gangnam Business District)
- YBD (Yeouido Business District)
Key Findings - 2017 Grade A Office
Tenant Ownership & Leasing
| Category |
2017 (%) |
2016 (%) |
y-o-y (%) |
| Owned |
23.7% |
25.9% |
-2.2% |
| Leased* |
76.3% |
74.1% |
+2.2% |
Chaebol, Non-Chaebol & Public Tenants
| Category |
2017 (%) |
2016 (%) |
y-o-y (%) |
| Chaebol |
35.7% |
38.2% |
-2.5% |
| Non-Chaebol |
55.4% |
54.1% |
+1.3% |
| Public |
8.9% |
7.7% |
+1.2% |
Foreign vs. Local Tenants
| Category |
2017 (%) |
2016 (%) |
y-o-y (%) |
| Foreign |
24.6% |
24.5% |
+0.1% |
| Local |
75.4% |
75.5% |
-0.1% |
Office vs. Retail Space
| Category |
2017 (%) |
2016 (%) |
y-o-y (%) |
| Office |
86.3% |
86.7% |
-0.4% |
| Retail |
13.7% |
13.3% |
+0.4% |
Tenant Classification by District
| District |
2017 (%) |
2016 (%) |
y-o-y (%) |
| CBD |
66.5% |
65.2% |
+1.3% |
| GBD |
72.3% |
70.7% |
+1.6% |
| YBD |
50.6% |
49.7% |
+0.4% |
| District |
2017 (%) |
2016 (%) |
y-o-y (%) |
| CBD |
33.5% |
34.8% |
-1.3% |
| GBD |
27.7% |
29.3% |
-1.6% |
| YBD |
49.4% |
47.8% |
+0.6% |
Top Five Industries by District
Seoul
| Rank |
Industry |
2017 (%) |
2016 (%) |
| 1 |
Finance & Insurance |
34.3% |
31.3% |
| 2 |
Manufacturing |
20.2% |
21.3% |
| 3 |
Information & Communication |
9.4% |
9.3% |
| 4 |
Professional, Scientific & Tech |
8.9% |
8.9% |
| 5 |
Wholesale & Retail |
5.8% |
6.7% |
CBD
| Rank |
Industry |
2017 (%) |
2016 (%) |
| 1 |
Finance & Insurance |
35.6% |
32.7% |
| 2 |
Manufacturing |
15.8% |
14.4% |
| 3 |
Information & Communication |
10.0% |
12.4% |
| 4 |
Professional, Scientific & Tech |
7.3% |
7.3% |
| 5 |
Retail |
13.7% |
13.3% |
GBD
| Rank |
Industry |
2017 (%) |
2016 (%) |
| 1 |
Manufacturing |
29.3% |
33.0% |
| 2 |
Finance & Insurance |
19.5% |
15.3% |
| 3 |
Professional, Scientific & Tech |
15.2% |
14.0% |
| 4 |
Information & Communication |
9.5% |
6.8% |
| 5 |
Wholesale & Retail |
10.8% |
9.2% |
YBD
| Rank |
Industry |
2017 (%) |
2016 (%) |
| 1 |
Finance & Insurance |
49.7% |
47.3% |
| 2 |
Manufacturing |
18.3% |
20.0% |
| 3 |
Information & Communication |
7.8% |
7.6% |
| 4 |
Professional, Scientific & Tech |
5.0% |
4.9% |
| 5 |
Wholesale & Retail |
3.9% |
3.6% |
Key Trends
- Service Industry Dominance: The service sector continues to be the largest employer in Seoul, with a significant share of office space occupied by service-related industries.
- Finance & Insurance Growth: The finance and insurance industry shows steady growth, particularly in the YBD, driven by the consolidation of local financial subsidiaries and the expansion of Fintech.
- Retail Expansion: There is a noticeable increase in retail space across all major business districts, especially in the CBD and GBD.
- Foreign Tenants: While the proportion of foreign tenants remains relatively low, there is a marginal increase in the CBD and GBD.
- Chaebol Movement: Chaebols are showing a slight increase in the GBD, likely due to the inflow from other districts, while their proportion decreases in the CBD and YBD.
- Co-working Operators: Co-working service providers are experiencing significant growth, especially in the GBD, with local operators more concentrated in this area.
Sub-Districts
Pangyo Technology Valley
- Office Space: 85.0% (2017), 86.7% (2016)
- Retail Space: 15.0% (2017), 13.3% (2016)
- Chaebol: 19.6% (2017), 19.0% (2016)
- Non-Chaebol: 77.5% (2017), 78.1% (2016)
- Public: 2.9% (2017), 2.9% (2016)
- Foreign Tenants: 7.4% (2017), 6.9% (2016)
- Local Tenants: 92.6% (2017), 93.1% (2016)
- Tenant Proportion: 51.1% (2017), 54.4% (2016)
- Landlord Proportion: 48.9% (2017), 45.6% (2016)
Sangam Digital Media City (DMC)
- Office Space: 85.2% (2017), 85.3% (2016)
- Retail Space: 14.8% (2017), 14.7% (2016)
- Chaebol: 21.6% (2017), 22.3% (2016)
- Non-Chaebol: 59.7% (2017), 58.2% (2016)
- Public: 18.7% (2017), 19.5% (2016)
- Foreign Tenants: 4.8% (2017), 4.3% (2016)
- Local Tenants: 95.2% (2017), 95.7% (2016)
- Tenant Proportion: 50.8% (2017), 54.3% (2016)
- Landlord Proportion: 49.2% (2017), 45.7% (2016)
Methodology
- Scope: The study analyzed 395 Grade A and B office buildings in Seoul's five major business districts.
- Data Sources: Data was collected from government building ledgers and categorized by industry using the National Statistics Office classification.
- Definition of Self-Use Buildings: Buildings where landlords and their subsidiaries occupy more than 70% of the GFA are classified as self-use.
- Timeframe: The analysis was conducted in Q4 2017, with comparisons to Q4 2016.
- Exclusions: Office-tels and mixed-use buildings with residential components were excluded from the analysis.
Industry Classification Details
- Agriculture, Forestry & Fishing
- Mining and Quarrying
- Manufacturing
- Electricity, Gas, Steam & Water Supply
- Sewage, Waste Management, Renewable Materials & Environmental Remediation
- Construction
- Wholesale & Retail Trade
- Transportation & Logistics
- Accommodation & Food Service Activities
- Information & Communications
- Financial & Insurance Activities
- Real Estate-Related Activities
- Professional, Scientific & Technical Activities
- Business Facilities Management & Business Support
- Public Administration, Defense & Social Security
- Education
- Human Health & Social Welfare
- Arts, Sports & Recreational Services
- Membership Organizations, Repair & Other Personal Services
- Hiring Activities within Households & Production for Self-Consumption
- Activities by International & Foreign Organizations
Conclusion
The report highlights the dynamic nature of the Seoul office market, with a strong presence of the service sector, especially finance and insurance, and a growing trend in retail space. The CBD and GBD show distinct tenant profiles, with the GBD experiencing a higher proportion of retail space and a slight increase in Chaebol presence. The YBD remains dominated by finance and insurance, while Pangyo and DMC show different industry compositions and tenant trends. The methodology ensures a comprehensive and consistent analysis across all surveyed buildings.
