FAQs :: RSQUARE

What are the current office vacancy rates and NOC levels in Seoul’s major office districts?

According to the RSQUARE Office Market Report,
which surveyed 945 office buildings with a GFA of 3,305㎡, the vacancy rates and NOC (Net Occupancy Cost) by district are as follows.

As of Q4 2025, the average office vacancy rate in Seoul stood at 6.2%, continuing a decline for three consecutive quarters.

The average NOC (Rent + Maintenance Fees + Operating Costs) reached KRW 267,000, representing a 3.5% year-over-year increase.

🔍Market Data by District

District	Vacancy Rate (Incl. New Supply)	NOC
CBD(Central)	4.47%	KRW 290,455
GBD(Gangnam)	4.79%	KRW 295,424
YBD(Yeouido)	1.91%	KRW 285,335
BBD(Bundang)	6.26%	KRW 257,222

📌Terminology

Vacancy Rate(%) = Vacant Area ÷ Total Leasable Area × 100
NOC(Net Occupancy Cost) = (Rent + Maintenance Fees + Operating Costs(e.g., electricity, heating/cooling)) ÷ Exclusive Use Ratio

For more detailed market data, please refer to the report below.

※ Source : RSQUARE Office Market Report (Q4 2025)

What are the key factors to consider when planning an office relocation?

If you are searching for a new office,
reviewing the following items in advance will help RSQUARE provide customized recommendations more efficiently.

🔍 Key Office Leasing Considerations

Area: Consider an average of 8–10㎡ (2.5–3 sqm(3.3㎡)) per employee based on usable office area.
Preferred Location: Select locations based on business characteristics and employee accessibility.
Expected Move-in Date: Essential for reviewing available listings((including anticipated vacancies) and coordinating lease negotiations.
Budget: Establish a budget range, including security deposit, rent, and maintenance costs.
Parking Requirements: Determine the number of parking spaces required for employees and visitors.
Additional Facilities: Review needs for storage, showroom, server room, or other operational facilities.
Additional Services: Check if reinstatement of the current office or interior design for the new space is required.

📝 Request 'Finding an Office' Consultation

What lease incentives can be negotiated when signing an office lease?

Common lease incentives in office leasing include Rent-Free (RF) periods, Tenant Improvement (TI) allowances, rent reductions, and fit-out rent-free periods.

These incentives vary depending on vary depending on building conditions (vacancy rates) and lease terms.

🔍 lease incentives in office leasing

Rent-Free (RF): A specified period during which rent payments are waived.
Tenant Improvement (TI) Allowance: Financial support provided for interior construction and fit-out costs.
Rent Reduction: A direct reduction in the contracted rental rate.
Fit-out Rent-Free Period: A rent-free period provided for the duration of interior construction.

Leveraging data from over 300,000 buildings nationwide and real transaction data,
RSQUARE recommends the most suitable office properties tailored to your requirements.

As Korea’s leading office leasing advisory firm,
we do our best to help clients receive better incentives when signing a lease.

📝 Request 'Finding an Office' Consultation

What are the vacancy rates and rental rates for logistics centers by major region?

According to the RSQUARE Logistics Market Report, which surveys rental-dedicated logistics centers with a gross floor area (GFA) of 9,900㎡:

As of Q4 2025, the average rental rate for dry storage facilities nationwide remained stable
at KRW 32,000–33,000 per spm(3.3㎡), while vacancy rates gradually declined to 15.3%.

For cold storage facilities, rental rates have declined since Q4 2024 to approximately KRW 60,000 per spm(3.3㎡).
Vacancy rates shifted into a downward trend beginning in Q1 2025 and were recorded at 38.5% as of Q4 2025.

🔍 Regional Supply Distribution

Southeast Gyeonggi: 27.4% of national inventory
Southwest Gyeonggi: 19.6%
Incheon: 16.6%
Gyeongnam: 10.0%

Demand characteristics vary depending on product categories. Regions with a high proportion of food and household goods,
such as Northern Gyeonggi and Jeolla, are expected to maintain relatively stable leasing demand.

In contrast, Southeast Gyeonggi, where fashion and general merchandise are concentrated, continues to face relatively higher vacancy risks.

For more detailed market data, please refer to the report below.

※ Source : RSQUARE Logistics Leasing Market Trend Report 2025

What are the latest leasing market trends for logistics centers in the Greater Seoul Area?

The latest logistics leasing market trends can be found in the RSQUARE Logistics Market Report,
published regularly by RSQUARE.

According to the latest report, new logistics center supply has significantly decreased since 2025 due to rising construction costs
and a challenging development environment. As a result, the market is being reorganized around existing completed assets.

While vacancy rates for both dry and cold storage facilities shifted into a downward trend in Q1 2025,
clear differences have emerged depending on facility size. As of Q4 2025, small and ultra-large warehouses maintain relatively low vacancy rates, whereas large-scale warehouses continue to face higher vacancy pressures, indicating selective demand concentration by asset type.

📌 Key Market Insights

Assets with a high proportion of pure storage area and strong delivery turnover efficiency hold a competitive advantage in attracting tenants.
Assets with storage areas exceeding 90% show vacancy rates of only about 12%, while those below 60% record vacancy rates as high as 42%.
The market is shifting away from simple supply competition toward a 'spec-driven competition' structure centered on assets with the right location, structural efficiency, and product-category fit.

For more detailed market data, please refer to the report below.

※ Source : RSQUARE Logistics Leasing Market Trend Report 2025

How are the major logistics submarkets in the Greater Seoul Area categorized?

Logistics centers in the Greater Seoul Area are categorized into five major submarkets
based on proximity to Seoul and accessibility to key highway logistics corridors.

🔍 Major logistics submarkets in the Greater Seoul Area

Northwest : Gimpo, Paju, Goyang
Southwest : Incheon, Siheung, Ansan, Gwangmyeong
South : Hwaseong, Pyeongtaek, Anseong
Central: Gwacheon, Anyang, Gunpo, Uiwang, Seongnam, Suwon, Yongin (Suji, Giheung), Dongtan, Osan
Southeast: Gwangju, Yongin, Icheon, Yeoju

Since rental rates, vacancy rates, delivery accessibility, and recommended industry types differ by region,
selecting the right location aligned with a company's logistics characteristics and delivery strategy is critical.

You can explore regional actual transaction data and market trends through the RSQUARE Logistics Market Report.

📌 View RSQUARE Logistics Market Report

What should I consider when evaluating retail leasing properties?

The key to evaluating retail leasing properties is to evaluate three core elements simultaneously:
Location & Revenue Potential, Leasing Terms, and Contractual Risks.

📌 Core Checkpoints

1) Commercial Area & Location : Target customer alignment is more important than simple foot traffic volume.

- Foot traffic volume and time-of-day traffic patterns

- Primary customer demographics and business suitability

- Visibility, pedestrian flow, and nearby competitors

2) Leasing Terms (Total Occupancy Cost) : Evaluate the property based on the Total Occupancy Cost (TOC).

- Monthly rent + Maintenance Fees + Common Area Maintenance (CAM)

- Whether percentage rent applies, plus security deposit and key money structures

- Whether to take over existing interior fixtures, and the scope of reinstatement obligations

3) Contractual Risks : It is essential to review lease renewal rights and the 5% rent increase cap.

- Lease term, renewal, and termination conditions

- Rent escalation rates and business category restrictions

- Facility condition checks: electrical and exhaust/ventilation systems

Based on commercial district data and real retail operation cases, RSQUARE reviews location, revenue potential, leasing terms,
and contractual risks comprehensively to recommend the most suitable retail properties.

📝 Request Retail Leasing Consultation

What is the leasing process for a pop-up store?

Pop-up stores are characterized by ultra-short-term leases.

The process typically follows this sequence:
Planning & Concept Development → Site Sourcing → Contract & Permitting → Construction → Operation & Exit.

🔍 Step-by-Step Process

1) Planning & Concept Development : Define the target commercial district and operating period (typically 1 week to 1 month).

2) Site Sourcing : Secure locations with proven foot traffic, such as ground-floor retail spaces or multi-purpose cultural spaces.

3) Contracting : Unlike standard retail leases, negotiations primarily focus on reinstatement terms and short-term flat fees.

4) Operation & Exit : Analyze marketing performance indicators such as visitor traffic and conversion rates, then restore the space and complete the move-out process.

A pop-up store is not simply a short-term space rental — it is a strategic marketing project designed to create brand experiences and drive measurable marketing results.

From location recommendations tailored to your brand objectives and target audience to contract management and post-operation analysis, RSQUARE supports the entire pop-up store process.

📝 Request Pop-up Store Leasing Consultation

What are the recent transaction price trends for office buildings in Seoul?

According to the RSQUARE Office Market Report, which surveyed 945 office buildings with a GFA of 3,305㎡:
As of Q4 2025, the average transaction price per pyeong for office buildings in Seoul and Bundang reached KRW 29.82 million,
a slight decline of 2.3% from the previous quarter.

However, the annual average for 2025 increased to KRW 31.26 million, up 7.4% year-over-year.

These fluctuations are largely attributed to quarterly changes in traded asset composition.
Overall, the market has widened its gains for three consecutive years since the 2021–2022 surge, sustaining a solid upward trend.

🔍 Key Market Indicators

Average Seoul Office Cap Rate: 4.28% (up 0.12%p from the previous quarter)
3-Year Korean Treasury Yield (Q4 2025): 2.83%
Yield Spread: 145bps (difference between Cap Rate and government bond yield)

While 2026 transaction volumes may slow due to concerns over CBD oversupply and a slower pace of policy rate cuts,
selective investment demand for prime assets is expected to support stable transaction activity.

📌 View RSQUARE Office Market Report (Q4 2025)

Why is the Cap Rate important when analyzing the investment market?

Cap Rate(Capitalization Rate) is a fundamental metric used to evaluate commercial real estate investments.

It serves as a benchmark for evaluating both asset pricing and profitability,
representing the expected annual return an investor can anticipate from a property.

For example, a Cap Rate of 5% indicates that the asset is expected to generate an annual return equivalent to 5% of its total value.

🔍 Formula

Cap Rate = NOI(Net Operating Income) ÷ Asset Value
- NOI(Net Operating Income) : Rental income - operating expenses
- Asset Value : Property price

In the Seoul office market, Cap Rates have recently stabilized in the low-to-mid 4% range, reflecting stable rental income and low perceived risk.