CBRE Korea: Seoul Commercial Real Estate Market Posts Record Investment Volume in 2025, Led by Office and Logistics Assets

- End-user demand and preference for prime assets continue to strengthen
- Strategic investors accounted for approximately one-third of office transactions, driven by increased owner-occupier acquisitions
- Logistics supply fell 71% year-on-year, signaling a shift toward market rebalancing

February 03, 2026 (Seoul) – According to the Seoul Figures Q4 2025 report released by CBRE Korea, the world’s largest commercial real estate services company, Seoul’s commercial real estate investment market reached a record annual transaction volume of KRW 33.7 trillion in 2025. The market rebound was supported by improved financing conditions amid falling interest rates and the completion of previously delayed large-scale transactions. Notably, increased owner-occupier acquisitions and a strong preference for prime assets underscored a structural shift in transaction dynamics.

Throughout 2025, declining interest rates significantly narrowed the negative spread between borrowing costs and capitalization rates, gradually restoring investor confidence that had remained cautious in prior periods. This trend continued into the fourth quarter, with Seoul commercial real estate investment volume reaching KRW 8.9 trillion, up 68.6% year-on-year. Office and logistics assets once again accounted for the majority of transactions during the quarter.

Office transactions in Q4 totaled approximately KRW 5.6 trillion, representing 63% of total quarterly commercial real estate investment. Strategic investors played a prominent role, with notable owner-occupier acquisitions including LG Gwanghwamun Building by LX Group and Premier Place by MoneyToday, highlighting continued corporate demand for headquarters assets.

The average vacancy rate for Grade A office buildings in Seoul rose slightly by 0.2 percentage points quarter-on-quarter to 3.3%, signaling a gradual transition toward a more normalized supply-demand balance following the ultra-low vacancy environment of 1–2% observed between 2022 and 2024. Nominal rents increased 2.0% quarter-on-quarter to KRW 40,768 per sq m, while effective rents reached KRW 38,304 per sq m, up 6.3% year-on-year, despite a modest extension of rent-free incentives.

The Seoul metropolitan Grade A logistics market experienced a marked shift in supply dynamics. New supply in Q4 totaled 278,361 sq m, bringing full-year additions to approximately 1.04 million sq m, significantly easing the supply overhang accumulated in recent years. As a result, the average vacancy rate for Grade A logistics centers stood at 17% at year-end, while ambient logistics facilities saw vacancy decline to around 10%, indicating entry into a stabilization phase. Logistics investment volume in Q4 rose nearly 70% quarter-on-quarter to KRW 2.2 trillion, with capital concentrating on prime assets such as Cheongna Logistics Center, attracting both domestic and international investors.

In the retail sector, limited domestic consumption recovery was partially offset by a continued rebound in inbound tourism. Cumulative foreign visitor arrivals between January and November 2025 exceeded 17.4 million, representing a 15% year-on-year increase and surpassing 2019 levels by 9%. Consumer spending patterns are shifting from high-priced luxury goods toward lifestyle, beauty, and wellness-focused mid-priced products. In parallel, demand from medical-related tenants is rising alongside the expansion of Korea’s medical tourism industry. Myeongdong is being reshaped into a “beauty and medical-specialized” district driven by the concentration of large pharmacies and beauty brands, while key retail hubs such as Seongsu and Hannam continue to record stable leasing demand and upward rental pressure.

Claire Choi, Senior Director, Head of Research at CBRE Korea, commented, “Amid a declining interest rate environment, 2025 marked a year in which previously delayed transactions resumed, leading to a significant expansion of investment activity, particularly in the office and logistics sectors. At the same time, we are observing a shift in transaction characteristics and asset preferences, as corporate strategic acquisitions and selective investment in prime assets become more prominent.”