"Vacancy Rate Drops from 65% to 16% Due to Shared Office Move-Ins"

FastFive Reveals Vacancy Rate Changes Before and After Move-In and Cases of Real Estate Value Increase

[Asia Economy Reporter Kim Cheol-hyun] FastFive, a domestic shared office company (CEO Kim Dae-il), announced on the 10th an analysis result that it solved the vacancy problem of partner building owners and contributed to the increase in real estate value based on this.

According to FastFive, the vacancy rate of the entire 25 branch buildings reached 65% before occupancy, but decreased to 16% after FastFive moved in. Although FastFive leases only part of the building space, it is effectively lowering the vacancy rate of the entire building it occupies. This is analyzed to be because the floating population of the building increased and the user base tends to become younger after FastFive moved in. FastFive also manages its own vacancy rate at around 3% on average by providing the space borrowed from building owners as various products tailored to customer demand.

In particular, since FastFive's main customer base is aged 25 to 45, which is the most preferred age group in retail commercial districts, it also creates the effect of attracting a consumer base with purchasing power. This helps the building owners to smoothly attract tenants other than FastFive and quickly resolve the remaining vacancies.

Additionally, FastFive reported that it created three cases of building sales among the buildings it occupied, leading to an average 20% increase in sale prices. Gangnam Finance Plaza near Seolleung Station was traded by an asset management company after FastFive moved in; the previous purchase price was about 20 million KRW per pyeong, but the sale price rose to about 25 million KRW per pyeong. For the newly built Midtown in Yeoksam-dong and Brandkan in Nonhyeon-dong, sales were made at prices 33% and 22% higher per pyeong, respectively, compared to similar-sized buildings in nearby areas at the time of new construction after FastFive moved in.

Although the increase in real estate value cannot be entirely attributed to FastFive's occupancy, FastFive sees itself as a driving force that solves building owners' problems and creates added value. Kim Dae-il, CEO of FastFive, said, "FastFive is a platform that connects supply and demand for offices," adding, "Building owners are also important partners of FastFive, and by adding content and services to the hardware of real estate, we will continue to prove the 'FastFive effect' that can create new value."