- Approximately 2.69 Million Startups from 2016 to 2018... Increasing Demand for Section Offices
As science and IT technology rapidly advance and products with outstanding technology and ideas gain high popularity, the number of one-person businesses and small-scale companies is steadily increasing.
According to a press release by Statistics Korea, the number of newly established companies in 2018 was 920,000, showing a 0.7% increase compared to the previous year. In 2016, 870,000 companies were newly established, and in 2017, 910,000 companies were created, estimating that the number of startups less than three years old is about 2.69 million.
Along with the steady increase in the number of startups, considering that more than half of these startups are one-person businesses or small-scale companies with a total staff size of five or fewer, it is expected that section offices will be highly popular among the offices they settle in.
Section offices are a form of dividing large offices mainly used by big corporations into smaller units, gaining great popularity among small-scale companies that do not require large spaces. Additionally, when a company grows and needs more space, it can expand without relocating, allowing for efficient space configuration.
A section office complex about to be launched recently is the ‘Cheongnyangni Station Lotte Castle SKY-L65 Section Office’ complex. This complex is directly connected to the Cheongnyangni Station private railway station, offering very high accessibility, making it a focal point for companies considering office relocation.
The section office is part of the ‘Cheongnyangni Station Lotte Castle SKY-L65,’ which consists of four apartment buildings and one landmark tower. Besides the section offices located on floors 9 to 17 of the landmark tower, officetels as well as retail and cultural facilities are planned to be included.
The ‘Cheongnyangni Station Lotte Castle SKY-L65 Section Office’ complex will also provide a business lounge typically found in prime-grade offices. To enhance convenience, it offers a caf? and lounge for residents, meeting rooms, and exclusive elevators for office use.
In addition, landscaping spaces such as Gallery Forest, Secret Caf?, and Starlit Garden are provided to create a pleasant working environment and increase worker satisfaction. The presence of cultural and retail facilities within the complex is also a strength, allowing occupants to enjoy all basic infrastructure within a single building.
In July, the Seoul Metropolitan Government announced through a press release that it plans to establish the Hongneung Bio Cluster near Cheongnyangni Station, consisting of 260 companies with an employment inducement effect of about 6,000 people. The ‘Cheongnyangni Station Lotte Castle SKY-L65 Section Office’ is located at the center of this cluster, ensuring sufficient demand from the surrounding area.
Section offices have the advantage of being suitable for small-scale companies due to their flexible configurations. From an investor’s perspective, the ability to resell pre-sale rights and exemption from loan regulations such as LTV lowers investment barriers, so active leasing and transactions are expected to continue in the future.
Meanwhile, the promotional center for the ‘Cheongnyangni Station Lotte Castle SKY-L65 Section Office’ is operating on the first floor of Yeolsan Building, 302 Majang-ro, Seongdong-gu, Seoul (Exit 3 of Majang Station on Line 5).
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