National Office Vacancy Rate Maintains Single Digits for 9 Consecutive Months, Growing Interest in Commercial Real Estate Sparks 'Triatz' Attention

- Demand for Commercial Real Estate Increases, Lowering Office Vacancy Rates... 'Jisik Sanup Center' Gains Popularity
- 'Jisik Sanup Center' Noted for Efficiency and Rationality... 'Triarts' Jisik Sanup Center in Spotlight

The popularity of commercial real estate remains strong despite the downturn in the real estate market. This is because office vacancy rates are maintaining low levels as corporate tenant demand increases.

According to data from the Korea Real Estate Board, the nationwide office vacancy rates recently recorded single-digit figures for nine consecutive months: 9.6% in Q3 2022, 9.4% in Q4 2022, and 9.5% in Q1 2023. The vacancy rate in Q1 this year was 0.9 percentage points lower than the same period last year (10.4%).

However, among the metropolitan area and the five major provincial cities, only Gyeonggi-do (5.2%) and Seoul (6.5%) recorded single-digit vacancy rates, indicating that office demand is concentrated in the metropolitan area.

Amidst the low vacancy rates in metropolitan commercial real estate, the most notable commercial property in the market is the knowledge industry center. Formerly known as apartment-style factories, knowledge industry centers have recently become larger and more complex, gaining attention as commercial real estate that surpasses prime-grade offices.

In this context, developer Gunpo Complex Development PFV Co., Ltd. (construction by Taeyoung Construction, SK Ecoplant, SK D&D) is currently selling ‘Triarts’ at the Gunpo Station Area Complex Development Project A-1BL (Dangdong area) in Gunpo-si, Gyeonggi-do. With a total floor area of approximately 240,000㎡ and a scale of 3 basement floors to a maximum of 28 floors above ground, it is being developed as a complex knowledge industry center combining office and manufacturing types.

The Gunpo Station area, where the knowledge industry center is located, is a representative southwestern metropolitan area business and industrial complex, home to numerous industrial complexes such as Gunpo Jeil Industrial Complex, one of the largest industrial complexes in the metropolitan area, Gunpo Smart Town, Uiwang Technopark, Anyang IT Valley, and Anyang International Distribution Complex. It also hosts many logistics complexes including Uiwang ICD Terminal 1, the largest comprehensive logistics base in the metropolitan area in Dongyang, Gunpo Complex Logistics Terminal, and Bugok Comprehensive Cargo Terminal.

Moreover, Gunpo Station nearby allows travel to Gangnam, City Hall, and Yongsan within about 40 minutes, Sadang and Guro within about 20 minutes, and Suwon within about 14 minutes. Additionally, with proximity to Geumjeong IC, Gunporo, and the Metropolitan Area 1st Circular Expressway, it boasts a well-connected wide-area transportation network facilitating easy access throughout the metropolitan area.

Furthermore, a complex transfer center is planned at nearby Geumjeong Station for the Metropolitan Area Express Railway GTX-C line (Yangju?Suwon), which is expected to further improve transportation conditions. In addition, multiple development projects are planned to strengthen local industrial infrastructure, including the Gunpo Station Area Urban Regeneration Activation Project, Dangjeong-dong Industrial Area Revitalization Project, and the establishment of the Yuhan R&D Cluster.

The product features are also outstanding. Understanding the regional characteristics with many manufacturing and logistics centers, a ‘Direct Pass System’ will be established to enhance the convenience of logistics loading and unloading. Additionally, spaces for creators and video and advertising companies, which have recently become a trend, will be provided. Facilities such as a ‘Photo Studio’ equipped with filming equipment to allow tenant companies to conveniently shoot products, and creative spaces where creators can easily film and edit videos, are also planned.

The Triarts model house is located in the Dangdong area of Gunpo-si, Gyeonggi-do.