Seven out of 10 domestic startups were considered to consider the relocation of the office as a preemptive response to the burden of rent and the economic slowdown.
Still, the Gangnam region (GBD) is the best area of the startup, but many start-ups that prefer urban areas (CBDs) such as Gwanghwamun, City Hall, Euljiro, and Jongno have reached a significant number of startups.
Al Square (CEO Lee Yong-kyun), a commercial real estate data company, conducted a survey of ‘office transfer’ survey for startup officials from 9th to 31st of last month. As a result, 71.4%of all respondents (84) said they were considering the current relocation of the office.
The most common areas where startups are considering as a new office were the regional areas of Gangnam Yeoksam Seolleung Samsung Station (66.7%, multiple answers). It seems that the Gangnam area is still favored in the Gangnam area, which is attracted by investment companies, and there are many companies in the same company, and secure talent, collect information, and form a network.
50%of respondents prefer urban areas such as Gwanghwamun, City Hall, Euljiro, and Jongno. Compared to the Gangnam area, the same rent can be used to use a more comfortable space. It is also considered that more companies are moving to Gangbuk. The Yeouido area (YBD) was 13.3%and the area of Seongsu Station in Ttukseom, Seoul was 10%.
The most common reason for moving the office was ‘rent burden (50.0%)’. The investment market is also reflected in the startup’s office operation plan. Following the previous demand for employees (30.0%), preemptive response (26.7%), and current location dissatisfaction (16.7%).
Startups are important in the office location, the first hand of the traffic environment (90.5%), which is close to the subway station. Rents (71.4%) and office building facilities (61.9%) were also important factors for the choice of office.
Ryu Kang-min, head of the Research Center, said, The steep interest rate hike and the slowing investment market are also affecting the trend of the company’s relocation. There will be more cases of focusing on the rain.
The average rent of three or more floors of large offices in the Seoul city area is 31,800 won per 1㎡ in the second quarter, which is higher than the Gangnam area (25,400 won). The price is very high, so if you think about relocation before the office, you need to consult with an expert.