[Report] "You Have to Wait 20 Minutes to Eat"... How DL E&C Changed the Scene at Magok One Grove [Real Estate AtoZ]

DL E&C Completes Most of Its Move-In to One Grove on the 22nd
DL Group Kicks Off the 'Magok Era' in Earnest... Bustling F&B Scene
Office Occupancy at 40%... Residential Prices Soar on Demand for Proximity to Work
Surrounding Small Businesses Struggle as One Grove Retail Draws in Customers

At 8:00 a.m. on the 22nd, the entrance gate of Building A at One Grove, a massive new mixed-use business complex in Magok-dong, Gangseo-gu, Seoul, was bustling with employees wearing DL E&C badges crowding the escalators. With DL E&C, a core affiliate of DL Group, completing most of its move-in on this day, Building A-where DL Group is concentrated-was especially lively. In contrast, Buildings B, C, and D, which still have many vacant offices, remained relatively quiet. This was the scene on the first day marking the official start of the 'Magok era' for DL Group.

People waiting to enter a restaurant at One Grove during lunchtime on the 22nd. Photo by Oh Yugyo.

The energy became even more apparent as lunchtime approached. The first basement level of One Grove connects Buildings A through D and is packed with dozens of food and beverage outlets. On this day, Japanese restaurants and tantanmen specialty shops in the basement of Building A had four to five groups waiting, with entry times exceeding 20 minutes. Those who could not enter restaurants immediately registered their wait on 'Catch Table' at each store and spent time browsing nearby clothing stores, bookstores, and accessory shops.

An employee from Saramin, an existing tenant, said, "In the past, there was no need to worry about finding a seat at lunchtime, but now there are many places where you have to wait in line. The atmosphere has changed a lot since DL Group moved in." However, there are complaints that the prices at cafes and restaurants are higher than expected and that there are few options. One Grove is dominated by high-end brand cafes with no 'low-cost coffee,' and most restaurant meals cost over 13,000 won. A DL E&C employee commented, "It actually feels like there are fewer choices than before the move. Since restaurants outside One Grove are a bit far, more people may end up using the cafeteria on the 11th floor of Building A."

Employees commuting to One Grove Building A on the morning of the 22nd. Photo by Oh Yoo-kyo.

DL Group is the largest tenant in One Grove, occupying about 15% of the total office space (313,500 square meters). They are renting five floors, from the 7th to the 11th, in Building A. Considering that the overall office occupancy rate at One Grove is just over 40%, nearly half of the occupied space belongs to DL Group. Starting last month, DL Energy and DL Construction moved in one after another, and with DL E&C completing its move-in on this day, the group relocation is more than 70% complete. Once DL Holdings and DL Chemical move in before Chuseok, the relocation of the main affiliates will be virtually finished.

DL Group began in 1939 as Burim Sanghoe in front of Bupyeong Station in Incheon and, over 86 years, has moved from Dongja-dong in Yongsan-gu, Susong-dong and Pyeong-dong (Donuimun D Tower) in Jongno-gu, and has now finally settled in Magok. DL E&C had considered whether to renew its lease at D Tower, which had served as its headquarters since 2020, but decided that relocating to Magok was more reasonable than facing a rent increase. However, there remains a possibility that the company could eventually return to its Susong-dong building, which is slated for future redevelopment.

When One Grove was completed in September last year, there were no tenants, raising concerns about a 'vacancy bomb.' However, with the addition of companies such as Flagwon, Invitros, Parata Aviation, Air Incheon, Saramin, global asset management firms like Neuberger Berman and Starwood, and now DL Group, the complex is gradually stabilizing.

Meanwhile, unlike the office space, where occupancy is still below 50%, One Grove Retail (148,000 square meters) boasts a leasing rate of over 95%, attracting major brands and popular food and beverage outlets that are drawing customers from the surrounding area. The complex features Emart Traders, Kyobo Bookstore, Muji, Uniqlo, as well as famous restaurant chains such as Yido Gomtang and Jungang Haejang. In contrast, smaller nearby shopping areas are struggling to feel any positive impact on sales due to increased competition. A local real estate agent in Magok commented, "The office occupancy rate needs to rise above the current 40% for the trickle-down effect to spread."

Residential real estate has also soared thanks to the 'One Grove effect.' For example, an 84-square-meter unit in Magok M Valley Complex 6 was sold for 1.6375 billion won on the 1st of this month, setting a new record. This is an increase of more than 300 million won in just eight months, compared to around 1.3 billion won in January. During the same period, the price for jeonse (long-term deposit lease) also jumped from 600 million won to 800 million won. According to the real estate platform Asil, the number of jeonse listings for apartments in Magok-dong dropped by about 30%, from around 100 in January to 71 as of the 22nd of this month. Analysts say that demand for homes close to workplaces is driving up prices.