2024 Seoul Flexible Office Market

The Flexible Office Market in Seoul currently consists of 278 centers, covering approximately 630,000 square meters. The average center size is about 2,270 square meters, and the average monthly fee for a hot desk is around 280,000 KRW. The Gangnam Business District (GBD) accounts for about 66% of the market, followed by the Central Business District (CBD) and Yeouido Business District (YBD).

The market is shaped by six major operators, who hold a combined market share of approximately 42%. Notably, domestic companies such as Fastfive and Sparkplus are leading the market. While the market experienced rapid growth after the Covid-19 pandemic, there has been a recent decline in new center openings, with an increasing proportion of new centers located outside the three major business districts.

From the landlord's perspective, the continued strong landlord-favored market has reduced the attractiveness of flexible office operators. From the tenant's (operator's) perspective, the shift in strategy from master leases to management contracts and tenant incentives has led to a mismatch in needs between landlords and tenants, resulting in a sharp decline in the number of new center openings.

In the future, the flexible office market is expected to expand not only in major areas but also in new areas, based on a management contract structure. Furthermore, it is anticipated that operators will participate in and provide services throughout the value-add process for small and medium-sized buildings through platform businesses, and expand their service areas to include tenant advisory and consulting.