Last Year, 58 Stores per Commercial Building... Highest Since 2015

[Asia Economy Reporter Kim Hyemin] As the number of commercial buildings housing multiple stores has increased compared to previous years, economies of scale are becoming more prominent in the commercial real estate market. The number of stores per commercial building nationwide has gradually increased, reaching the highest level since 2015.

On the 25th, Real Estate R114 analyzed nationwide commercial building data using its proprietary commercial real estate analysis solution, RCS. The average number of stores per commercial building that opened last year was 58. There were 533 commercial buildings and 31,140 stores in total.

This is 19 more than the average of 39 stores last year and the highest figure since the survey began in 2015.

By region, the average number of stores was 64 in the Seoul metropolitan area and 42 in other regions. The metropolitan area had more stores, which is attributed to the concentration of neighborhood shopping centers in the metropolitan area. In fact, last year, the average number of stores per neighborhood shopping center nationwide was 80, overwhelmingly higher than other types.

The influence of commercial building size was also reflected in prices. Last year, the average sale price per 3.3㎡ of neighborhood shopping centers (based on the first floor) in Seoul, which had the highest number of stores per commercial building, was 87.63 million KRW, and the rent was 247,000 KRW, both higher than the overall average sale price of 71.8 million KRW and rent of 233,000 KRW for all commercial buildings. On the other hand, commercial buildings within complexes, which had relatively fewer stores, showed a sale price of 62.44 million KRW and rent of 206,000 KRW.

Yeokyunghee, Senior Researcher at Real Estate R114, said, "Even within large commercial buildings such as neighborhood shopping centers or complex shopping malls, prices and yields per store vary depending on location and business type, so caution is required when investing." She added, "Stores on higher floors or basements with low customer accessibility, or those far from the main entrance, also have lower price levels, so purchasing based solely on the overall size or price of the commercial building is not advisable."