- Efficient Space Rental Without Unnecessary Space Gains Popularity Among Small Businesses
Recently, the proportion of small businesses with 1 to 5 employees has significantly increased in the trend of domestic company types, leading to growing interest in section offices and small-scale offices where these businesses mainly settle.
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 the number of startups less than three years old at approximately 2.69 million.
Considering that more than half of these startups are small businesses with 1 to 5 employees, the demand for section offices and small-scale offices is expected to steadily increase. An office investment specialist stated, “As the demand for spaces where small businesses settle is expected to grow further, proactive investors are already moving to secure inventory early.”
Recently, section offices near Cheongnyangni Station, which has well-developed transportation infrastructure and high accessibility, have attracted much attention not only from the corporate demand base but also from investors. The complex is called ‘Cheongnyangni Station Lotte Castle SKY-L65 Section Office.’
This office is located within the landmark tower of the ‘Cheongnyangni Station Lotte Castle SKY-L65’ complex, whose sales began last year. Composed of four apartment buildings and a landmark tower, the ‘Cheongnyangni Station Lotte Castle SKY-L65’ successfully completed the sales of apartments and officetels earlier, making it a highly notable complex in the recent sales market.
The biggest advantage is its direct connection to Cheongnyangni Station. For office locations, the commuting routes of workers must be considered, and the direct connection to the privately operated station is expected to result in high satisfaction. Since Cheongnyangni Station is a major transportation hub with various railway lines, subways, and bus routes, the popularity of the section office complex is expected to be high from the start.
Landscaped spaces such as business lounges and gardens, which can be seen in prime-grade office complexes, also stand out. Various luxury lounges will be provided to leave a sophisticated image for employees and visitors of tenant companies. To enhance work satisfaction, green spaces such as ‘Gallery Forest,’ ‘Secret Cafe,’ and ‘Starlit Garden’ have been maximally created. Additionally, exclusive elevators for office tenants have been designed to enable convenient commuting.
The office’s attractiveness as an investment product is also expected to contribute to the sales success of this complex. Unlike officetels, which are now classified as residential properties, offices are not included in the housing count, allow resale of pre-sale rights, and are not subject to loan-to-value (LTV) and other loan limit regulations, lowering investment barriers.
An investment expert said, “The number of companies is steadily increasing, becoming more sophisticated, and individual ideas are becoming more important, so small businesses will become more numerous,” adding, “there is room for further growth in the section office market.”
Meanwhile, the ‘Cheongnyangni Station Lotte Castle SKY-L65 Section Office’ showroom is currently operating on the 1st floor of Yeolsan Building, 302 Majang-ro, Seongdong-gu, Seoul (Exit 3 of Majang Station on Line 5).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
