Incheon has seen a steady increase in demand for logistics centers due to the growing cargo volumes at Incheon Airport and Incheon Port. With limited development land in Gimpo since 2020, Incheon is emerging as a key last-mile fulfillment hub in the western Seoul metropolitan area.
Logistics center supply in Incheon is concentrated around the South Port and Aam Logistics Complex, Incheon Terminal Logistics Complex, and the North Port hinterland. Since 2021, supply has surged, driven by the growth of e-commerce, and approximately 932,000 py of new logistics space is expected to be added.
An analysis of tenants occupying logistics centers over 5,000 py shows that e-commerce accounts for 47%, with Coupang being the largest user, while 3PL (third-party logistics) accounts for 35%, led by CJ Logistics, followed by GNK Logistics and M&M.
Most logistics centers in Incheon are built on flat land, often reclaimed, allowing for shorter development periods and customized designs. These centers typically feature self-driving ramps that enable full-floor docking, which suits the high-frequency in-and-out operations of e-commerce. This also allows for floor-by-floor leasing, enhancing asset flexibility. However, challenges include high ramp construction costs, lower space efficiency, and potential traffic congestion.
In summary, Incheon is solidifying its role as a strategic logistics hub in the western SMA. Future development should focus on tenant-specific strategies and efficient space utilization to maintain competitiveness.
