This article was published on April 12, 2026 at 18:03 in the capital markets compass 'Signal'.
Forecasts have emerged that commercial office transactions this year will be as active as last year. Analysis suggests that as construction costs have increased, existing offices have become more price competitive, drawing greater investor interest. By asset class, data centers and logistics centers were recommended as worth watching.
Soo-jung Lee, CEO of Savills Korea, met with Seoul Economic Daily and stated, "Last year, office transactions in Seoul totaled 21 trillion won, ranking first across the entire Asian market," adding, "This year, large properties such as Pine Avenue Building A and The K Twin Towers are coming to market, so transaction volume is expected to be significant."
According to CEO Lee on the 12th, as interest rates showed a declining trend for some time after 2024, funds of office investors who had purchased before 2020 reached maturity, leading many to realize profits. She predicted that particularly in Seoul's Central Business District (CBD), concerns about oversupply are emerging, and serious "separating the wheat from the chaff" among assets will begin. She explained, "Recently, domestic market interest rates are rising due to increased uncertainty in domestic and international economic conditions and the impact of geopolitical risks in the Middle East," adding, "There are also concerns about new CBD office supply, so properties with lower investor preference may experience delayed transactions."
However, she anticipated that preference for existing prime offices would increase due to rising development costs. CEO Lee said, "As construction costs and financing costs have risen sharply, new office prices have also jumped, spreading the perception that existing office transaction prices are relatively competitive," adding, "In the CBD, transactions will likely focus on offices with competitive advantages in location and rent compared to newly built assets."
CEO Lee emphasized the need to pay attention not only to commercial offices but also to logistics centers. According to Savills, ambient temperature logistics centers were supplied at an annual average of 3.6 million square meters over the five years through 2024, but supply dropped sharply to only 1 million square meters in 2025. Reasons cited for declining logistics center supply include rising construction costs, prolonged permitting periods, and regulations on logistics center supply in the metropolitan area.
CEO Lee said, "Due to reduced supply, there is potential for future rent increases, so foreign investors purchased major assets last year," adding, "Active investment in logistics centers is expected to continue this year, but cold storage logistics centers will need time for market stabilization due to vacancy issues."
Additionally, Savills recently announced a contract to acquire Eastdil Secured, a U.S. commercial real estate advisory firm, for 1.6 trillion won. CEO Lee stated, "Eastdil Secured is the number one commercial real estate advisory firm in the United States," adding, "When domestic financial investors (FIs) and strategic investors (SIs) seek overseas investment opportunities, active advisory services can be provided utilizing our global network."
The plan is to enhance differentiation through Savills' strengthened advisory capabilities. CEO Lee said, "Savills' advantage is that we can attract diverse investors and discover assets through our cross-border organization," adding, "The acquisition of Eastdil Secured is expected to further strengthen our cross-border capabilities."
