An infographic showing key trends in South Korea's commercial real estate market for 2016

1. OPPORTUNITIES
CHALLENGES
CBRE RESEARCH
This report was prepared by CBRE South Korea Research Team, which forms part of CBRE Research—a network of preeminent researchers and
consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate.
© CBRE Ltd. 2016 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do
not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm
independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the
material are reserved and cannot be reproduced without prior written permission of CBRE.
Source: CBRE Research, Q1 2016.
R E A L E S T A T E M A R K E T O U T L O O K
Asia Pacific
INVESTMENTRETAILOFFICEECONOMY INDUSTRIAL
• Trade
liberalisation
• Fiscal stimulus
LEGISLATIVE
REFORM
• China economic
slowdown
• Rising household
debt
• Emergence of
new business
districts
• Cost saving among
local companies
and MNCs
• Luxury retail
slowdown
• Falling
department
store sales
• Tourism driving
increased revenue
• F&B expansion
• Growth of online
shopping
• Lack of
transparency
• More new
supply
• E-commerce
growth
• Modern logistics
development
• New
infrastructure
• Rising cost of
financing
• Yield
compression
• Growing interest
from foreign
investors
• Increase in
allocations to
alternative
investments
• Abundant liquidity
• Service industry
and IT sector
expansion
• Renewals
scheduled in
several buildings
STRUCTURAL
CHANGES
DIVERSIFIED
INVESTMENT
GROWTH POTENTIAL
TENANT
RETENTION
CHANGING
CONSUMPTION
BEHAVIOUR
OUTDATED
MARKET
PRACTICES CHANGE IN
INVESTMENT
CYCLE
MARKET
MATURITY
SLOWER
ECONOMIC
GROWTH
SOUTH KOREA