- Impact of COVID-19 and prolonged low interest rates... Increased investment value in commercial properties with highly stable anchor tenants secured
- ‘Bundang Jiwel Avenue’ confirmed to house LG Best Shop! Strengthening customer attraction and driving commercial district revitalization
Commercial complexes securing an 'anchor tenant' are gaining attention as prime investment destinations.
An anchor tenant refers to a key store with high customer attraction power, typically represented by large discount stores, multiplexes, or theme parks. Generally, these tenants occupy large spaces and have relatively long-term leases, usually guaranteed for 5 to 10 years. Commercial complexes confirmed to have anchor tenants minimize vacancy concerns and boast high stability.
They also hold a strategic advantage in attracting customers. A well-known anchor tenant draws abundant foot traffic, creating a spillover effect that benefits other businesses within the complex. Due to these advantages, there is strong latent demand, and expectations for rent increases are heightened.
Real estate experts say, “Since anchor tenants can increase customer attraction and dwell time, complexes securing them are indeed more advantageous in generating profits compared to others,” adding, “Competition among commercial complexes to attract anchor tenants is intensifying to enhance differentiated investment value and stability.”
New commercial facility ‘Bundang Jiwel Avenue’ anchor tenant ‘LG Best Shop’, expected stable rental income for the next 10 years
Recently, attention has focused on ‘Bundang Jiwel Avenue,’ a new commercial facility located in the Bundang district of Seongnam, Gyeonggi Province. It is a commercial complex within the ‘Bundang Jiwel Prugio’ apartment complex, launched in March 2019, and is a representative commercial facility in the metropolitan area with solid fixed demand and stability.
The most distinctive advantage of ‘Bundang Jiwel Avenue’ is securing long-term tenant demand through the presence of an anchor tenant. ‘Bundang Jiwel Avenue’ plans to lease a total of 19 units across the first and second floors, with ‘LG Best Shop’ occupying 17 of these units. Accordingly, it is expected to enjoy stable rental income for the next 10 years. Since a large corporation affiliate is moving in, the yield is also analyzed to be higher than other commercial facilities. Additionally, full interest-free installment payments have been offered as a benefit for investors, encompassing all factors that strengthen investment stability.
Moreover, there is abundant hinterland demand centered around large residential towns and public institutions. Large residential towns are located in Seohyeon-dong, Sunae-dong, and Baekhyeon-dong near ‘Bundang Jiwel Avenue,’ housing approximately 52,000 households with about 140,000 residents. Nearby, about 98,000 employees work at approximately 12,800 companies, including public offices like Bundang District Office, Doosan Heavy Industries’ new headquarters, and large-scale offices. It is also expected to absorb demand from Pangyo Techno Valley.
‘Bundang Jiwel Avenue’ is situated at the entrance and exit of the Bundang-Suseo Expressway, making access to the Pangyo area convenient. Therefore, when the 2nd and 3rd Pangyo Techno Valleys are established, the hinterland demand is expected to expand further. Upon completion, it is projected that 13,000 jobs will be created, centered on approximately 2,560 advanced technology companies.
Excellent location conditions such as proximity to subway stations and harmony with surrounding natural environment, commercial district with one of the lowest vacancy rates nationwide
Located between Sunae Station and Seohyeon Station on the Bundang Line, the area enjoys abundant foot traffic. Sunae Station is a 5-minute walk, and Seohyeon Station is reachable within 10 minutes on foot. The Seohyeon Station commercial district, with AK Plaza and Bundang Rodeo Street, attracts a large population, providing a favorable position for customer attraction.
Another notable feature is the harmonious integration with the surrounding natural environment. ‘Bundang Jiwel Avenue’ is uniquely positioned with a double view of Tancheon and Bundangcheon streams and Jungang Park. Additionally, the first floor of the commercial facility is designed as an ‘urban street mall’ along the park, while the second floor offers a view of the park and stream, maximizing the advantages of the surrounding environment.
Furthermore, the area is recognized as a commercial district with one of the lowest vacancy rates nationwide. Bundang is evaluated as having the lowest vacancy risk among commercial districts across the country. According to the Korea Real Estate Board, as of the fourth quarter of 2020, the vacancy rate for commercial facilities in Bundang was 2.6%, significantly lower than the national average (12.7%), Seoul (8.8%), and Gyeonggi Province (9.6%). It is an active commercial district operating year-round, providing an environment favorable for customer attraction regardless of business type.
‘Bundang Jiwel Avenue’ is located in Bundang-gu, Seongnam-si, Gyeonggi-do, and consists of one basement floor and two above-ground floors.
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