3rd Quarter Logistics Center Cumulative Transaction Amount 4.2 Trillion Won... "Vacancy Rate Stabilization from Next Year"

The metropolitan area logistics center market is showing signs of recovery with increased transactions and rising prices compared to the same period last year. Large-scale transactions are continuing mainly in the southern region, and expectations are emerging that the market will stabilize as new supply decreases after 2025.

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Analysis indicates that the metropolitan area logistics center market is showing signs of recovery due to an increase in transaction volume. Large-scale transactions are continuing mainly in the southern region, and it is expected that the market will stabilize as new supply decreases after next year.

According to the "2024 Metropolitan Area Logistics Center Market Report" published on the 23rd by Jenstar Mate, a commercial real estate service specialist company, the cumulative transaction volume of metropolitan area logistics centers as of the third quarter this year is approximately 4.2 trillion KRW. This is an increase of 30.6 billion KRW compared to the same period last year. If ownership transfers of some assets are completed by the end of the year, the annual transaction volume is expected to reach about 4.6 trillion KRW.

By region, the southern area stood out. From the beginning of this year to the third quarter, the total number of transactions for logistics centers in the southern region was 10, with transaction amounts recording 1.3 trillion KRW, an increase of about 1 trillion KRW compared to the same period last year. The Anseong Daedeok Logistics Center A and B buildings (total floor area of 117,000 pyeong), purchased by LaSalle Asset Management for about 620 billion KRW, recorded the largest transaction volume this year.

Transaction prices are also on the rise. Currently, the transaction price per 3.3 square meters of metropolitan area logistics centers is about 7.39 million KRW, up 8.7% from last year. The transaction price per 3.3 square meters of mixed cold and ambient temperature logistics centers rose 18.4% during the same period to 8.16 million KRW.

The report forecasts that new supply of metropolitan area logistics centers will sharply decrease by more than half from next year. As of the third quarter this year, the new supply volume of metropolitan area logistics centers is 871,000 pyeong. Although the absorption rate of new supply fell short of expectations, the report anticipates that the vacancy rate of ambient temperature logistics centers in the metropolitan area (15.1%, including new buildings) will gradually stabilize as supply decreases.

A representative from Jenstar Mate said, "Vacancy rates may temporarily rise due to the supply of large new assets and the increase in ambient temperature conversion areas, but the market will find stability in the long term. In particular, excluding newly built logistics centers, the vacancy rate based on ambient temperature is maintaining a stable level of 7.9%, so concerns about oversupply will naturally be resolved within the next one to two years."