CBRE Korea Reports Cumulative Commercial Real Estate Investment Surpasses KRW 25 Trillion in Q3 2025 Grade-A Office and Logistics Deals Continue to Drive Market Activity

- Q3 investment volume reached KRW 7.95 trillion; full-year total expected to exceed KRW 30 trillion
- Office demand remains resilient amid limited supply; investor interest rebounds in logistics driven by cold storage demand and large-scale transactions

October 29, 2025 (Seoul) – CBRE Korea, the world's largest commercial real estate services company, announced in its Seoul Figures Q3 2025 report that total investment in Korea’s commercial real estate market reached KRW 7.95 trillion for the third quarter, bringing the year-to-date total to over KRW 25 trillion. This figure already exceeds the KRW 22 trillion recorded for the entire year of 2024, and with several large-scale transactions expected to close in Q4, the full-year volume is anticipated to surpass KRW 30 trillion.

The report noted that the inclusion of landmark transactions in the Bundang Business District (BBD) would bring the total Q3 investment volume to approximately KRW 10 trillion. Offices remained the dominant asset class, accounting for KRW 7.66 trillion, or 77% of total investment. Major transactions such as Pangyo Tech One Tower (approx. KRW 1.9 trillion) and Tower 730 (approx. KRW 870 billion) led the market momentum. Meanwhile, logistics investment surged to KRW 1.26 trillion, representing a 2.6-fold increase quarter-over-quarter, as investor sentiment improved in response to stabilizing oversupply concerns.

Seoul’s Grade-A office market recorded an average vacancy rate of 3.1%, up 0.5 percentage points from the previous quarter. Gangnam continued to demonstrate robust demand with a decrease of 0.3 percentage points to 1.5%, while the CBD and YBD experienced moderate increases to 4.1% and 3.6%, respectively. Net effective rents rose 1.0% to KRW 37,624 per square meter, and face rents increased 0.9% to KRW 39,964 per square meter, reflecting a stable upward trend.

Leasing activity was particularly strong in Gangnam and Yeouido, where notable transactions included Toss Bank’s move into Opus 459 and new leases by the Korea Fire Protection Association and NH Capital at ONE CENTINEL. In Magok, demand from the aviation and construction sectors contributed to the district’s growing status as an emerging business hub.

Retail fundamentals also improved, supported by domestic consumption recovery and an increase in inbound tourism. Myeongdong continued its recovery with vacancy falling for the fourth consecutive quarter, reaching the 7% range in Q2 2025—the lowest level since 2018. Gangnam and Seongsu-dong remained active with sustained leasing demand from fashion, beauty, and medical brands. Chinese brands such as Xiaomi and CHAGEE have been actively expanding their presence across various retail districts.

In the logistics sector, new supply of Grade-A logistics centers in the Greater Seoul area declined by approximately 68% year-over-year, while leasing demand from e-commerce and third-party logistics (3PL) operators remained solid, supporting a gradual trend toward market stabilization. In southern regions such as Anseong and Icheon, large-scale logistics assets maintained sub-5% vacancy. Notably, demand for cold storage facilities increased, driven by the need for high-spec warehouses to support cold chain logistics and fulfillment. As a result, total cold storage leasing volume tripled quarter-over-quarter, signaling a gradual recovery in this segment.

“The Q3 commercial real estate market showed signs of steady growth and targeted momentum, supported by leasing activity and strategic investment in prime office and logistics assets,” said Claire Choi, Senior Director, Head of Research at CBRE Korea. “Despite macroeconomic uncertainties, more investors are proactively executing forward-looking asset strategies, especially in large-scale transactions. This, combined with the possibility of additional rate cuts, is raising expectations for a gradual market recovery.”