Korea Major Report – Seoul Office Market Tenant Profile and Demand Outlook 2016
The majority (63.2%) of total Grade A and B office space in Seoul (CBD, GBD, YBD) is leased whilst the remaining (36.8%) is owned by companies for selfuse. The YBD has the highest proportion (48.6%) of owner-occupied space.
In 2015 the YBD saw more foreign companies
including AIG and IBM moving into prime buildings such as Two and Three IFC Towers, respectively.The proportion of foreign companies consequently increased by 3.3%pt.
The presence of public companies in major business districts has waned since 2013 when the government first began relocating 154 government-run entities to administrative districts outside of Seoul.
Demand of conglomerates moving out into newly formed districts will continue to see strong demand with improvement of infrastructure and advantage of government incentives.
In Pangyo and Sangam, domestic firms’ presence far outweighed that of foreign companies. In terms of total occupied space, around 93% of tenants in Pangyo’s Grade A and B office buildings were domestic firms, while just 7% were foreign.