The average vacancy rate in Seoul's prime business districts was 2.4% in the first quarter of 2024, marking the seventh consecutive quarter with vacancy rates in the low 2% range, creating a fully landlord-dominated market. The Magok Business District (MBD), on the other hand, is a fully tenant-dominated market, with 190,000 square meters of Class A office space scheduled for simultaneous delivery from the third quarter of 2024. The experience of the previous four overseas cities has shown that at a time when downtown rents are skyrocketing and vacancy rates are declining, companies are moving to outlying areas with lower rents and better natural environments.
How will the Magok business district change in the future? Will it be a crisis driven by massive new office supply, or will there be opportunities in the oversupply?
