Nationwide Vacancy Rate of Medium to Large Commercial Buildings Hits Record High... "Impact of Domestic Economic Downturn"

Office and commercial buildings near Yangjae Station, Seoul (Provided by Commercial Information Research Institute)

[Asia Economy Reporter Onyu Lim] The vacancy rate of medium-to-large commercial buildings nationwide recorded an all-time high in the fourth quarter of last year.

The Commercial Information Research Institute, a research and development company specializing in income-generating real estate, announced this on the 4th, explaining, "The frozen atmosphere in the commercial building market continues as the domestic economy remains in recession."

The average vacancy rate of medium-to-large commercial buildings nationwide in the fourth quarter of last year was 11.7%. The institute explained, "This is the highest figure since quarterly surveys began in 2009."

As the domestic economic recession continues and markets such as social commerce, delivery applications, and secondhand goods apps have recently grown, the number of commercial buildings nationwide that cannot afford rent has increased, leading to more closures and a rise in vacancies.

Researcher Hyuntaek Jo of the Commercial Information Research Institute said, "Although vacancies have increased, rents have been maintained at similar levels," and predicted, "Unless there are special economic variables, the unfavorable market atmosphere will continue for the time being."

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