Seoul Figures Q1 2026

OFFICE
Average Grade A office vacancy across Seoul’s three major business districts declined to 2.8%, stabilizing the market. However, new leasing volume fell q-o-q and y-o-y amid a wait-and-see stance. Leasing in YBD improved the most but the CBD faces vacancy pressure from new supply in Q2 2026.

RETAIL 
Rising inbound tourist arrivals and KRW weakness drove vacancy down by 5–6 ppts across Seoul’s major high-street corridors, alongside continued rental growth. Brands in Bukchon and Seochon are increasingly purchasing buildings to secure long-term bases and hedge against rent increases.

LOGISTICS 
With 2026 supply forecast at a decade low, vacancy has continued to decline from its 2024 peak, with dry storage vacancy falling below 10%. 3PL and e-commerce tenants accounted for 65% of new take-up, with competition for prime assets expected to intensify alongside rising rental pressure.

INVESTMENT
Overall investment volume declined 17% y-o-y but strategic investor-led office acquisitions and selective transactions in prime logistics assets continued. Given record-high investment intentions, a rebound in pent-up demand is expected once uncertainty eases.