Logistics Tenant Profile

Executive Summary

  • Occupier demand for logistics facilities in Greater Seoul has surged this year as the COVID-19 pandemic accelerates existing structural changes and spurs the emergence of new consumption trends.

  • As investors look to increase their exposure to what is one of the most sought-after property sectors in Asia Pacific, this report provides a comprehensive overview of the market by analysing the origin, industry, size, building type, location and other key features of tenants in 75 logistics properties in Greater Seoul.

  • 3PLs account for 50.2% of total occupied space, followed by e-commerce platforms, which utilise 24.6%. Collectively, the two industries occupy three quarters of leasable Grade A logistics space in Greater Seoul, underlining their market dominance.

  • Demand from e-commerce platforms is strongest in areas less than 30km from Seoul. This is because these occupiers require conveniently located logistics facilities to conduct rapid deliveries. In areas 30-60km from Seoul, which includes the cities of Yongin and Incheon, 3PLs occupy 64% of space.

  • The number of tenants occupying a space less than 2,000 pyeong (6,600 sq. m.) was found to be the highest, reflecting high levels of demand from a broad range of industries for relatively small spaces. The number of tenants leasing an area of more than 20,000 pyeong (66,000 sq. m.) accounted for roughly 10% of the total surveyed by CBRE, underling growing demand from large space users, primarily e-commerce platforms.

  • CBRE’s study found that assets built six years ago or more are mainly leased to 3PL companies, which occupy 56% of GFA, with e-commerce platforms taking up just 9.5% of GFA. In contrast, the e-commerce industry occupies a far larger proportion of space in properties built less than five years ago, taking up 32% of GFA, with 3PLs accounting for 48%.

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