CBRE: Commercial Real Estate Transactions Hit All-Time High, Solid End-User Demand Expected This Year

Transaction Volume Reaches 33.8 Trillion Won
Up 48.5% Year-on-Year
Grade A Asset Supply to Expand in 2026
Urban Vacancy Rate Expected to Stay Below 5%

An analysis has found that the volume of commercial real estate transactions reached an all-time high last year, driven primarily by increased activity in large office assets. This year, as new supply expands mainly in urban areas and demand remains robust, the market is expected to enter a phase of gradual adjustment.

According to a report published on January 22 by the global real estate services company CBRE Korea, the total volume of domestic commercial real estate transactions last year amounted to 33.8 trillion won. This represents a 48.5% increase compared to the previous year and marks the largest volume ever recorded since statistics have been compiled.

Office view of Yeouido area, Yeongdeungpo-gu, Seoul. The Asia Business Daily DB

CBRE Korea attributed the increase in transactions to a combination of factors, stating, "Rather than concerns over the current interest rate level, growing confidence in future rate cuts has played a greater role in decision-making. This, in turn, led to the sale of large-scale assets that had been delayed for a long time, as well as a concentration of forward purchases and strategic investor acquisitions."

By asset type, offices accounted for 24.68 trillion won, logistics for 5.3 trillion won, hotels for 1.84 trillion won, and retail for 1.97 trillion won.

Transactions involving office and logistics assets made up 89% of the total, driving the overall increase. In particular, office transactions valued at over 100 billion won (22 trillion won) and logistics transactions exceeding 10 billion won (4.5 trillion won) contributed significantly to the expansion in scale.

While some adjustment is expected this year due to the base effect, the market is projected to remain solid as strategic investments to secure office buildings coincide with continued demand for alternative assets. Notably, data centers are expected to strengthen their position as policy-driven strategic assets, supported by policy financing and regional development incentives.

In the Seoul office market, new supply of Grade A assets in urban areas is set to begin in earnest this year. Approximately 240,000 square meters of new supply is expected in 2026, and including projects scheduled to complete project financing conversion by 2029, a total of 1.49 million square meters will be added. Despite the increase in new supply, CBRE Korea forecasts that the vacancy rate will stabilize below 5%, supported by end-user demand for prime assets.

Choi Suhye, Executive Director and Head of Research at CBRE Korea, commented, "2026 will mark a period not only of simple adjustment, but also of simultaneous expansion in supply, restructuring of demand, and diversification of investment strategies. For tenants, this will mean more options, while for investors, a strategic approach centered on proven assets will become increasingly important."