Newmark's 1Q 2026 Korea Office Report Shows Market Stability as Redevelopment Drives Leasing Shifts and New Demand Emerges
SEOUL, Korea, April 17, 2026 /PRNewswire/ -- Newmark announces the release of its 1Q26 Korea Office Leasing Conditions & Trends report, highlighting stable market fundamentals, evolving demand drivers and continuing rental growth across Seoul's office market. Vacancy held at 3.8% quarter-over-quarter in 1Q26, and rents continued to trend upward, rising approximately 5% year-over-year, supported by sustained demand for high-quality office space and ongoing flight to quality.
"Seoul's office market continues to demonstrate underlying stability, even as office leasing activity becomes more dynamic," said Judy Jang, Executive Director, Head of Research – Korea. "We are seeing a reallocation driven by redevelopment, evolving occupier needs and a growing presence of technology and consumer-led companies. This is contributing to a more diversified tenant base and reinforcing the premium placed on high-quality assets."
Key themes from the report include:
- Redevelopment-driven relocations reshaping leasing activity: Increased tenant movement tied to redevelopment and refurbishment is driving short-term vacancy fluctuations and negative absorption, particularly across core assets. At the same time, underlying demand remains resilient, with occupiers continuing to prioritize newer, high-quality space – reinforcing a broader "flight to quality" trend across the market. Read more here.
- New demand drivers expanding beyond traditional sectors: Leasing demand is diversifying as global AI and technology firms establish and scale their presence in Seoul, alongside K-consumer brands consolidating operations into larger, integrated headquarters in prime districts. This shift is contributing to a broader tenant mix and supporting incremental demand for well-located, high-spec office environments. Read more here.
- Regulatory easing accelerating redevelopment and market polarization: Policy support and incentive programs are encouraging landlords to upgrade aging assets, particularly in the Gangnam Business District, while limited near-term supply is amplifying the impact of these upgrades. As a result, the gap between newly delivered or refurbished buildings and older stock is expected to widen, supporting continued rental growth and increased differentiation across submarkets.
Read more here.
Judy added, "Newmark expects leasing demand to continue expanding, supported by technology-driven occupiers and evolving corporate real estate strategies. While new supply in the second half of 2026 may introduce some volatility in vacancy, prime assets are expected to sustain upward pressure on rents."
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended December 31, 2025, Newmark generated revenues of nearly $3.3 billion. As of December 31, 2025, Newmark and its business partners together operated from approximately 175 offices with over 9,300 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.
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