Tenant incentives remained flat but increases in face rents led to a marginal increase in effective rents in Q1 2018, supported by stable occupier demand across all three major business districts.
F&B and sporting goods retailers drove demand. Chaebol-operated retailers are exploring new development opportunities outside Seoul and Gyeonggi province in search of new growth.
The period saw solid leasing demand for Grade A logistics centres from third party logistics firms and manufacturers.
The investment market remained active in Q1 2018 with a total of 42 deals completed across all sectors, representing transaction volume of KRW 2.4 trillion, a slight decline of 8.2% q-o-q.