As of 4Q25, vacancy in the Central Business District (CBD), known as (Gwanghwamun/Jongno/Myeongdong, has increased to approximately 5.7%, reflecting near-term volatility driven by major corporate relocations. In contrast, vacancy in the Gangnam Business District (GBD) remains tight at around 2.0%, supported by sustained tenant demand and limited available supply, while the Yeouido Business District (YBD) remains relatively stable at approximately 2.7% vacancy.
Leasing activity continues to concentrate in newly built and refurbished prime assets, made attractive by ESG standards, modern building specifications, and strong connectivity. At the same time, emerging office districts such as Seongsu, Magok, and Pangyo are gaining traction as function-driven business hubs, further accelerating market polarization heading into 2026.
Key Takeaways
- CBD vacancy increased to approximately 5.7% following major corporate relocations and portfolio restructuring.
- GBD vacancy remains tight at around 2.0%, supporting overall market stability.
- YBD vacancy remains relatively stable at approximately 2.7%.
- Tenant demand remains concentrated in prime, newly built, and refurbished assets.
- Flight-to-quality trends continue to dominate leasing decisions.
- Performance polarization is widening between prime and non-prime buildings.
- Emerging districts such as Seongsu, Magok, and Pangyo are expanding as functional office hubs.
- Market fundamentals remain stable despite short-term volatility.
