Newmark report reveals Seoul office vacancy rate reached 4.5 percent

SEOUL, South Korea, Oct. 19, 2026 /PRNewswire/ -- Newmark announces it has released its Q3 2026 Seoul Office Market Report, which highlights that tenant relocations are reshaping leasing conditions across Seoul. Key findings include:

• Seoul Grade A office vacancy rose by 0.2 percentage points quarter-on-quarter, while face rents increased 4.9% year-on-year.
• Tenant relocations increased available space in the CBD and GBD, while relocation and expansion demand from financial institutions reduced vacancy in the YBD.
• Increased leasing incentives at selected CBD assets highlight the growing importance of effective lease terms and asset competitiveness.

"Headline vacancy rates and face rents only tell part of the story," said Judy Jang, Executive Director, Head of Research – Korea. "We are seeing increasingly different outcomes at the individual asset level, driven by building quality, location and the lease terms landlords are willing to offer. As new supply comes to market, particularly in the CBD, that competition could create more choice and negotiating flexibility for occupiers."

CBD: Selected Buildings Improve Leasing Performance Despite Rising Vacancy

The CBD vacancy rate rose by 0.5 percentage points to 7.0%, from 6.5% in the previous quarter. Vacancy pressure from earlier additions of prime supply persisted, while tenant relocations increased available space at major buildings. At the same time, demand from large occupiers supported absorption at selected assets, resulting in divergent leasing trends across buildings.

Buyoung Taepyeong Building recorded a substantial reduction in vacancy, supported by the relocations of the Seoul Metropolitan Infrastructure Headquarters and McDonald's Korea headquarters. INNO88 also improved occupancy following its refurbishment, attracting new demand, including the Constitutional Court of Korea. Corporate demand continued through Lotte Rental's relocation to the CBD, Hanwha General Insurance's lease at Central Place, and LG Household & Health Care's new lease at Seoul City Tower.

Meanwhile, the relocation of KB Card's IT services team released a substantial amount of space at Crystal Square. Availability also increased at other buildings, including Centropolis.

Looking ahead, large tenant relocations and the scheduled completion of Eul Tower in Q4 are expected to be key variables for CBD vacancy. New supply is expected to be relatively limited in 2027, although supply pressure could increase again thereafter, depending on the completion timing of large-scale developments.

GBD: Growth Industries Sustain Prime Demand Despite Increased Availability

The GBD vacancy rate increased by 0.6 percentage points to 2.7%, from 2.1% in the previous quarter. The increase reflected the inclusion of Gmarket's existing space at Gangnam Finance Center (GFC) in available space this quarter, following its decision to relocate to Seongsu. Availability at core Grade A offices remained generally limited, while global companies and firms in technology and pharmaceuticals continued to favour prime offices in Gangnam. Recent examples include leases by Tesla Korea and Sanofi at Centerfield, and by NPIXEL and medical AI company AITRICS at KT&G Daechi Tower.

Meanwhile, availability is expanding among small and medium-sized offices and in the sublease market. Seoul 707, formerly MetLife Tower, is expected to offer approximately 4,400 pyeong to external tenants following MetLife's relocation. The building was added to Newmark's GBD office survey coverage this quarter. Approximately 5,800 pyeong is also being offered for sublease at WeWork Tower Seolleung (PCA Tower). Although sublease space is excluded from direct vacancy calculations, it increases the range of options available to occupiers.

Newmark expects continued prime office demand from growth industries, alongside increased availability at existing assets and in the sublease market, to widen differences in leasing performance according to location, building quality and lease terms.

YBD: Financial-Sector Relocations and Expansions Reduce Vacancy

The YBD vacancy rate fell by 0.8 percentage points to 2.3%, from 3.1% in the previous quarter. Relocation and expansion demand from financial institutions supported vacancy absorption at major prime assets.

IGIS Asset Management is scheduled to consolidate its offices across four floors at Parc.1 Tower 2, while Mirae Asset Financial Group affiliates signed new leases at FKI Tower. Woori Financial Group affiliates also expanded their leased space at One Centinel.

HMM's potential relocation to Busan remains a key variable for YBD vacancy. If the move proceeds, approximately nine floors could become available at Parc.1 Tower 1. The actual market impact will depend on the timing of the relocation and subsequent leasing demand. However, limited new supply and Yeouido's competitive position as a financial hub are expected to support stable occupier demand.

Learn more at nmrk.com.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.