The Section Office Market with a Favorable Wind, Spotlight on ‘GL Metrocity Hyangdong’ with Abundant Backing Demand

Increase in Small Businesses Boosts Demand for Small Offices
Section Offices Popular for Excellent Cost Efficiency by Using Only Necessary Space

As government regulations focus on residential real estate amid the increasing market liquidity caused by the COVID-19 pandemic, interest in commercial real estate is rising.

According to the Shopping Information Research Institute in January, the nationwide transaction volume of commercial real estate, represented by knowledge industry centers, reached 4,206 cases last year, marking an 11.3% increase compared to 3,780 cases in 2019. Section offices are particularly gaining attention, driven by the rapid growth of small-scale enterprises such as startups, the main demand group for section offices, which increased nearly fourfold from 77,009 in 2013 to 280,856 in 2019 (Statistics Korea).

The reason small-scale enterprises prefer section offices over traditional office types is due to the modular design that allows companies to use as much space as they need.

Section offices can be purchased in the required area, allowing for reasonable pricing and individual registration by room, with no restrictions on business types, attracting a diverse range of demand. Additionally, the low initial investment cost enables investment with a small amount of capital, and the customizable interior layout offers high cost efficiency.

Amid this situation, the section offices within ‘GL Metrocity Hyangdong,’ the largest drive-in knowledge industry center in the northwest region, launched for sale this month by developer GL, are drawing attention.

GL Metrocity Hyangdong, developed by GL and constructed by Hanwha Construction, is located in Goyang City, just 700 meters from Seoul. The building is the largest knowledge industry center in the northwest metropolitan area, with a total floor area of approximately 194,813㎡, consisting of four basement floors and 14 above-ground floors, housing 531 knowledge industry center units, 60 section offices, and neighborhood facilities.

The section offices on the 13th and 14th floors of GL Metrocity Hyangdong maximize space efficiency by allowing use of only the necessary area. The entire building is constructed with terraces on all four sides, making all types terrace offices, and the high ceiling height maximizes openness. Furthermore, a dedicated parking lot and exclusive elevators for section offices are designed on the third basement floor, providing nonstop access from the third basement floor to the section offices, enhancing convenience for employees.

Facilities for employees are also provided within the section offices of GL Metrocity Hyangdong. Rooftop gardens used as rest areas are located throughout the knowledge industry center, and community facilities such as a fitness center will be available for employee welfare. Additionally, 1,344 parking spaces, exceeding 200% of the legal standard, are provided.

Another major advantage is the location. Hyangdong District, where GL Metrocity Hyangdong is situated, is the closest Gyeonggi area to northwest Seoul, with excellent access to Digital Media City (DMC), the center of Korea’s broadcasting and cultural industries, LG Science Park, and Magok District, home to about 90 major companies including Lotte with research and development facilities. It is also close to Gangbyeonbuk-ro, facilitating easy access to prominent industrial complexes throughout Seoul and the metropolitan area.

Moreover, the newly confirmed Goyang Line Hyangdong Station, connecting to the western part of Seoul, is expected to significantly improve transportation conditions across the metropolitan area in the future, likely increasing demand from enterprises.

GL Metrocity Hyangdong also attracts attention as an area benefiting from large-scale development projects. First, Changneung New Town, being developed as a 3rd new town twice the size of Pangyo New Town, is under development in Changneung-dong, Goyang City, adjacent to the complex. Additionally, about 220,000㎡ of office space, commercial facilities, and cultural tourism facilities are planned nearby, along with Susaek Station area, known as the Coex of northern Seoul.

A sales representative stated, “As the number of small-scale enterprises has significantly increased over the past few years, section offices, an evolved form of small offices, are gaining attention. Section offices offer high space efficiency as individual registration is possible for only the required area. The section offices in GL Metrocity Hyangdong are specially designed as terrace offices on all four sides and are attracting continuous interest from enterprises due to their location adjacent to Seoul.”

Meanwhile, the GL Metrocity Hyangdong knowledge industry center is also gaining attention. It is the largest knowledge industry center in the northwest region and the largest double-Z drive-in knowledge industry center in Korea, featuring manufacturing and distribution specialized designs.

GL Metrocity Hyangdong is scheduled for occupancy in the first half of 2023, and the model house is located in Goyang City, Gyeonggi Province.