After years of robust growth, the Seoul coworking market has reached a plateau

After years of robust growth, the Seoul coworking market has reached a plateau

According to a CBRE report, the slow down of the startup creation dynamic, the end of the hybrid working friendly times Covid19 had brought in South Korea and a robust demand for traditional offices in the Commercial Real Estate market are to blame for the situation.
This concludes a first cycle of strong coworking rise.

“From single-digit annual openings until 2017, the city witnessed a surge with 14 new locations in 2018, 18 in 2019, 14 in 2020, 21 in 2021, and 15 in 2022. However, the trend has reversed sharply. In 2023, only nine new locations opened, and as of the second quarter of 2024, merely two new spaces had been added this year”, observes the online media Korea Bizwire.

“In response to these challenges, coworking space operators are pivoting their strategies. They’re increasingly focused on managed services and expanding beyond the three main business districts”, comments the online media.

CBRE predicts that the future of coworking spaces in Seoul will be characterized by a managed services model and expansion into new districts. Operators are expected to diversify their services, offering value enhancement for small and medium-sized buildings, as well as leasing advisory and consulting services.
In 2022, there were more new openings outside these core areas than within them, a trend that has continued into 2024.

The Seoul’s market is largely controlled by six major operators – Talent Care팀 FASTFIVE , SPARKPLUS (스파크플러스) , WeWork, Regus, The Executive Centre, and JustCo – which collectively account for 42% of the market share. Notably, the top two players, FastFive and SparkPlus, are domestic companies.

http://koreabizwire.com/seouls-coworking-space-boom-slows-as-remote-work-era-wanes/292689