The logistics center market is facing a vacancy crisis due to an oversupply, especially in cold storage centers, where tenants hold a strong position. Despite the challenges, Rsquare’s Logistics Team has been successfully securing large contracts. Cheong-Myung Chae, team leader, believes that information is the key to overcoming market slumps. We sat down with him to learn more about his strategies.
R: Could you introduce yourself?
Chung-Myung Chae of Rsquare’s Logistics Team
Chae: I’m the leader of Logistics Team 2. My main clients include Coupang, FedEx, and Kolon. Before joining Rsquare, I worked at a firm specializing in industrial real estate, focusing on factory sales and leases in industrial complexes.
R: What does the logistics team at Rsquare do?
Chae: We handle LM (lease management) services and consult on leasing logistics centers over 1,000 pyeong, focusing on centers between 3,000 and 5,000 pyeong. We also help clients like Coupang, Kurly, and FedEx find urban warehouses near Seoul, regardless of size, based on their specific needs.
Examples of urban warehouses (Source: Herald Economy)
R: Congratulations on your recent big contracts! Can you tell us about them?
Chae: The logistics center leasing market is tough. Unlike the office market, the pool of potential tenants in logistics is smaller, with a few big logistics companies and retailers occupying nearly half of the market. The competition among agencies is fierce, and it’s difficult to find tenants with strong leasing intent. Even when they do show interest, many prefer to negotiate directly with the property owner, bypassing agencies.
Despite these challenges, we recently secured a lease for a 1,500-pyeong cold storage center in southern Gyeonggi at Korea Supercold.
The tenant is a 3PL (third-party logistics) company specializing in e-commerce, and we approached them with a reverse offer. By highlighting the unique fulfillment advantages of the Korea Supercold center, we found the perfect tenant and created a win-win situation for both parties.
We also worked hard to match the right tenants to the right properties by understanding the key features of major centers in each region. Currently, we’re negotiating a cold storage deal with a major retailer, aiming to revitalize this stagnant market segment.
R: Can you share another standout deal from your past work?
Chae: One of the biggest deals was with Coupang.
Over the past two years, we’ve secured 11 contracts with Coupang, covering large logistics centers and urban warehouses (known as "camps"), totaling around 23,000 pyeong. This helped establish Rsquare’s presence in the logistics market.
(Source: Coupang)
Coupang uses two main types of warehouses: giant centers like FCs or mega hubs over 10,000 pyeong and smaller sub-hubs or mobile camps for last-mile delivery. They also use specialized warehouses, like water camps and ice camps, based on the type of goods being delivered.
The mobile camps, in particular, are challenging to manage, but thanks to Rsquare’s extensive information network, we were able to secure these deals and build trust with Coupang.
During a nationwide expansion of mobile camps last year, we formed a task force to find properties across the country, including undeveloped land, buildings set for redevelopment, and even properties heading for auction. These were not listed on real estate platforms; we had to contact landlords directly to negotiate. We also had to meticulously check local regulations, building codes, and land use plans to meet Coupang’s compliance standards. Some projects took as long as a year to complete, but this experience helped us gain Coupang’s trust and improve our skills.
R: You recently secured an exclusive LM consulting contract for four logistics centers with Koramco Asset Trust. Could you tell us more about that?
Chae: We established our relationship with Koramco after closing the deal for FedEx’s Gimpo center last year. They were impressed with our work and proposed a full partnership. This year, we signed an exclusive LM contract to manage leasing for four of their logistics properties, and we’re working hard to fill those vacancies.
R: What’s your goal moving forward?
Chae: I’m hungry for growth. I find fulfillment in tackling new challenges and solving tough problems. My current mission is to successfully fill all of Koramco’s logistics properties with the help of my team, and I hope we can share that success together.
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The logistics center market is facing a vacancy crisis due to an oversupply, especially in cold storage centers, where tenants hold a strong position. Despite the challenges, Rsquare’s Logistics Team has been successfully securing large contracts. Cheong-Myung Chae, team leader, believes that information is the key to overcoming market slumps. We sat down with him to learn more about his strategies.
R: Could you introduce yourself?
Chung-Myung Chae of Rsquare’s Logistics Team
Chae: I’m the leader of Logistics Team 2. My main clients include Coupang, FedEx, and Kolon. Before joining Rsquare, I worked at a firm specializing in industrial real estate, focusing on factory sales and leases in industrial complexes.
R: What does the logistics team at Rsquare do?
Chae: We handle LM (lease management) services and consult on leasing logistics centers over 1,000 pyeong, focusing on centers between 3,000 and 5,000 pyeong. We also help clients like Coupang, Kurly, and FedEx find urban warehouses near Seoul, regardless of size, based on their specific needs.
Examples of urban warehouses (Source: Herald Economy)
R: Congratulations on your recent big contracts! Can you tell us about them?
Chae: The logistics center leasing market is tough. Unlike the office market, the pool of potential tenants in logistics is smaller, with a few big logistics companies and retailers occupying nearly half of the market. The competition among agencies is fierce, and it’s difficult to find tenants with strong leasing intent. Even when they do show interest, many prefer to negotiate directly with the property owner, bypassing agencies.
Despite these challenges, we recently secured a lease for a 1,500-pyeong cold storage center in southern Gyeonggi at Korea Supercold.
The tenant is a 3PL (third-party logistics) company specializing in e-commerce, and we approached them with a reverse offer. By highlighting the unique fulfillment advantages of the Korea Supercold center, we found the perfect tenant and created a win-win situation for both parties.
We also worked hard to match the right tenants to the right properties by understanding the key features of major centers in each region. Currently, we’re negotiating a cold storage deal with a major retailer, aiming to revitalize this stagnant market segment.
R: Can you share another standout deal from your past work?
Chae: One of the biggest deals was with Coupang.
Over the past two years, we’ve secured 11 contracts with Coupang, covering large logistics centers and urban warehouses (known as "camps"), totaling around 23,000 pyeong. This helped establish Rsquare’s presence in the logistics market.
(Source: Coupang)
Coupang uses two main types of warehouses: giant centers like FCs or mega hubs over 10,000 pyeong and smaller sub-hubs or mobile camps for last-mile delivery. They also use specialized warehouses, like water camps and ice camps, based on the type of goods being delivered.
The mobile camps, in particular, are challenging to manage, but thanks to Rsquare’s extensive information network, we were able to secure these deals and build trust with Coupang.
During a nationwide expansion of mobile camps last year, we formed a task force to find properties across the country, including undeveloped land, buildings set for redevelopment, and even properties heading for auction. These were not listed on real estate platforms; we had to contact landlords directly to negotiate. We also had to meticulously check local regulations, building codes, and land use plans to meet Coupang’s compliance standards. Some projects took as long as a year to complete, but this experience helped us gain Coupang’s trust and improve our skills.
R: You recently secured an exclusive LM consulting contract for four logistics centers with Koramco Asset Trust. Could you tell us more about that?
Chae: We established our relationship with Koramco after closing the deal for FedEx’s Gimpo center last year. They were impressed with our work and proposed a full partnership. This year, we signed an exclusive LM contract to manage leasing for four of their logistics properties, and we’re working hard to fill those vacancies.
R: What’s your goal moving forward?
Chae: I’m hungry for growth. I find fulfillment in tackling new challenges and solving tough problems. My current mission is to successfully fill all of Koramco’s logistics properties with the help of my team, and I hope we can share that success together.