Logistics Center Leasing

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

You can review the latest leasing market trends through the RSQUARE Logistics Market Report, published regularly by RSQUARE. According to the latest report, new logistics supply has significantly decreased since 2025 due to rising construction costs and worsening development conditions. As a result, the market is shifting toward existing completed assets. While vacancy rates for both ambient and cold storage facilities began to decline in Q1 2025, market conditions vary significantly by 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. In particular, assets with a higher warehouse area ratio and the ability to maximize delivery turnover are gaining a competitive advantage in tenant attraction. Facilities with a warehouse area ratio above 90% recorded vacancy rates of approximately 12%, while those below 60% showed vacancy rates as high as 42%. The market is shifting from simple supply competition toward a specification-driven structure where assets compete on location, operational efficiency, and product suitability. Detailed data is available in the RSQUARE Logistics Leasing Market Trend Report 2025. Report: https://en.rsquare.co.kr/cre-market-reporting?category=48v11k3LaW

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

Logistics Center Leasing