Cushman & Wakefield Korea Releases Season 4 of “Familiar Neighborhoods, Different Neighborhoods” Focusing on Office Renovations… 78% of Assets Are Over 10 Years Old, and Half Will Reach 20 Years Within the Next 5 Years
Cushman & Wakefield Korea has released Season 4 of “Familiar Neighborhoods, Different Neighborhoods,” an office renovation special analyzing the aging of Seoul’s office market and disparities in asset competitiveness. This report quantitatively examines office renovation trends and their effects across Seoul’s three major business districts (CBD, GBD, and YBD) by combining Cushman & Wakefield’s proprietary card big data, social big data, and real estate data.
According to the report, in the CBD - Seoul’s core office district - assets that are more than 10 years old account for 78% of the approximately 1.34 million pyeong of office inventory, and within the next five years, 55% of the total inventory is projected to be assets that are 20 years old or older. Amid increasing new construction supply and rising tenant expectations, the analysis suggests that the gap between properties that have secured competitiveness through renovation—even if they are aging—and those that have not will widen further.
In fact, the results for offices that have recently undergone renovations have been striking. Following the renovation of “Starfield Avenue” and the introduction of a tenant-exclusive lounge, online mentions of Grand Seoul increased by 322% compared to before the renovation. Meanwhile, Gwanghwamun D Tower has established itself as a leading commercial hub by planning retail-focused spaces and reorganizing its F&B mix, now accounting for approximately 30% of the top 20 retail brands in terms of sales among Gwanghwamun office buildings. KT Gwanghwamun West was also cited as an example of a building reborn as a landmark office building, featuring an open façade and a large-scale media façade.
Cushman & Wakefield Korea assessed that the competitiveness of office buildings is now evolving beyond being mere “revenue generators” to becoming “value generators.” The firm explained that maximizing asset value requires comprehensive improvements in physical competitiveness (hardware), content competitiveness (software), and operational competitiveness (operations).
Jason Yun, Executive Director of Retail Leasing Group at Cushman & Wakefield Korea, stated, “Although the Seoul office market is entering an era of oversupply of new construction, the key takeaway from this analysis is that even existing assets can become highly competitive through strategic renovations,” adding “Based on our unique analytical capabilities that combine credit card, social media, and real estate data, Cushman & Wakefield is proposing customized renovation strategies for each asset. Through this approach, we have confirmed results showing rental rates increasing by 8–12% compared to the regional average and vacancy rates improving from 3% to 0.5%,” he added.
Cushman & Wakefield Korea provides one-stop, integrated consulting services—ranging from branding strategies, tenant mix and market area consulting, to leasing advisory, project management, and asset management—through its Office Asset Competitiveness Assessment service. The “Familiar Neighborhoods, Different Neighborhoods” series is Cushman & Wakefield Retail’s flagship insights report, which has evolved annually since its first publication in 2023; in this fourth season, the scope of analysis has been expanded to include office arcades.
Cushman & Wakefield Korea’s Consulting Group began its integrated consulting project for merchandising planning and retail environment design in 2023, starting with the question of how to preserve and enhance the asset value of the 63 Building as an “extraordinary, everyday, and wide-reaching landmark”— a reputation it has built up over many years. With the confirmation of the Pompidou Center’s move into the building, the project proceeded to redefine the target audience, shifting the focus to the MZ generation—and specifically to the “M” generation, which has high purchasing power and visit frequency.
The key point is that the MD planning and spatial design were not commissioned separately but were integrated into a single strategic framework. The facility was divided into four zones—Welcome, ESC, Rest, and Gate—based on function, and visitor flow paths were designed by creating scenarios that link existing attractions (the observation deck, 63 Buffet, and Pompidou Center with new ones, ensuring that visitors do not leave after experiencing just one attraction.
The observatory renovation is cited as a prime example of the implementation of this consulting project. During the consulting phase, domestic and international observation deck trends were analyzed along six key axes: “Road to Observatory,” “Differentiated Experience,” “Digital Support,” “Interactive Experience,” “View Maximization,” and “Rooftop.” In particular, regarding the rooftop space—which was diagnosed at the time as “an excellent resource that was not being utilized”—the consulting team reviewed options ranging from the potential relocation of the communications and electrical rooms to the expansion of the stairwell, and proposed opening the space to the public. This space was indeed opened to the public on June 4 as the “63 Sky Picnic” rooftop—marking its first public opening in approximately 16 years.
The same planning logic was applied to the retail layout. During the consulting phase, 28 specific retail sectors were evaluated based on six criteria—including spatial flexibility, price accessibility, alignment with the target audience, and conceptual coherence—to identify five top-level categories, such as Design Items, Fragrance, and Living Interior. This categorization system was reflected in the actual layout of the lower floors upon opening.
To address the site’s unique physical constraint of relatively low ceiling heights, we proposed architectural lighting that illuminates walls and floors rather than using downlights, thereby creating a sense of psychological openness. The design direction for the retail environment, centered on the keywords “Gold,” “Grid,” and “Reflection,” was also incorporated into the actual finishes and lighting plan.
Kai Chae, Senior Director of the Consulting Group at Cushman & Wakefield Korea, said, “What we considered most important in the early stages of the consulting process was how to revitalize the asset value of the 63 Building as a ‘super-regional landmark.’ “If we had approached tenant mix and spatial design separately, the individual elements would inevitably have been disconnected; therefore, we opted from the outset for an integrated design approach within a single strategy. It is particularly meaningful to see the proposals made during the consulting phase being implemented one by one on-site, such as the reopening of the rooftop, which had been closed for a long time,” he said.
Through this renovation, the 63 Building has expanded from a financial hub to a multi-purpose cultural space where culture, art, and gastronomy coexist, and it is expected to establish itself as a landmark that offers a new reason to visit the Yeouido area.
Cushman & Wakefield Korea had already established a unique position in this field approximately two years ago by securing advisory track records for the sale of gas stations for all three major domestic oil refiners (GS Caltex, HD Hyundai Oilbank, and SK Energy). By successfully completing the sale of these two properties near Shinmok-dong Station, Cushman & Wakefield Korea has once again demonstrated its solid standing in the gas station sale advisory market.
The assets sold in this transaction are the GS Caltex Geonji Gas Station, located at 121-4 Mok-dong, Yangcheon-gu, Seoul, and the HD Hyundai Oilbank-operated Yangcheon Hyundai Self-Service Gas Station, located at 123 Mok-dong. Both properties are situated in prime locations adjacent to the Han River and have attracted significant market interest not only for their potential as standalone gas stations but also for their potential for medium- to long-term redevelopment. (For reference, the Yangcheon Hyundai Self-Service Gas Station was sold as part of a package deal with the Nakdong-ro Gas Station, and Cushman & Wakefield Korea’s Corporate Solutions team directly advised on the sale of both properties.)
In this transaction, Cushman & Wakefield Korea served as the sales advisor for the gas stations owned by GS Caltex and, separately, for the HD Hyundai Oilbank gas stations owned by Koramco Life Infrastructure REIT. In this transaction, in which a single advisory firm handled the sale of gas stations under different oil company brands, Cushman & Wakefield Korea’s Corporate Solutions team comprehensively assessed the locations and investment demand for the two assets within the same region, leading effective marketing and negotiations while ensuring the independence and confidentiality of each transaction.
Cushman & Wakefield Korea has established itself as the only real estate advisory firm to have advised on the sale of gas stations for all three major domestic oil refiners, having successfully completed the sale of SK Energy gas stations previously held by SK REIT Management. Since then, the firm has continued to steadily strengthen its expertise in advising on gas station sales. Gas station assets involve numerous special considerations - such as soil environmental surveys, lease agreements and vacating the premises, permits and approvals, demolition of existing facilities, and road occupancy—unlike general commercial real estate. As a result, sophisticated asset analysis and proactive risk management are key factors. Reflecting these unique characteristics, the Corporate Solutions Team at Cushman & Wakefield Korea has applied a sophisticated advisory process that proactively assesses risks from the earliest stages of a transaction.
Recently, gas stations are increasingly being utilized as development assets with the potential to be converted into various uses - such as residential, commercial, and logistics facilities - rather than simply being operated as real estate. In response, the Corporate Solutions Team at Cushman & Wakefield Korea provides integrated services ranging from advisory on the purchase and sale of gas stations to feasibility studies, the formulation of development concepts, the identification of investors and developers, and the coordination of experts in appraisal, legal, and architectural fields, all the way through to transaction closing.
Cushman & Wakefield Korea is enhancing its services through a one-stop advisory system that brings together experts from various fields, including licensed real estate brokers, architects, appraisers, and attorneys. Through this system, the company plans to provide close, comprehensive advisory services—from the asset identification stage through permit review, development strategy formulation, and final transaction closing—to companies and developers reviewing gas station site acquisitions and development projects.
