Updated: May 5
The second floor of Seoullo Terrace has dedicated entry from Seoullo 7017, creating an uplift in rentals for retail space on the upper floors.
CBRE Korea is proud to have supported the Seoullo Terrace redevelopment project with a transformative retail strategy that revitalized the Daewoo Foundation building and contributed to the success of Seoullo 7017, a major urban redevelopment project in Seoul.
Seoullo 7017 is modeled on New York City's famous High Line.I visited the High Line for the first time a couple of months ago and it was a pleasant surprise to experience an elevated park on the West Side of Manhattan. Seoullo 7017, which opened in May this year, is not a carbon copy the High Line; it is just under half the size (about 1 kilometer, from Hoehyeon subway station to the west of Seoul Station) and is a converted road overpass (the High Line is an old freight train line). Nevertheless, it is an equally impressive addition to Seoul which undoubtedly will provide spillover benefits to the surrounding area - in a precinct which has been crying out for a makeover.
Visitor numbers to Seoullo 7017 have already surpassed lofty expectations. For the landlord and retailers of Seoullo Terrace, the decision to build a dedicated entry from Seoullo 7017 to the second floor of the building is already paying off. Typically, the ground and first basement floors of retail space in Seoul office buildings attract significantly higher rentals than retail space located on upper levels. In the case of Seoullo Terrace, tenants on the second and third floors are enjoying robust turnover, and the landlord is enjoying a significant uplift in rental income - Seoullo Terrace is the only building in town I am aware of where the rentals on the second floor are at a premium to those of the first floor.
Seoullo Terrace contains a mix of international F&B brands including Godiva, Snow Fox and Starbucks, growing local chains such as Emoi, Han6gam, Kervan and Kon Thai, and other new concepts with their second-ever location, namely Bun Patty Bun (Artisan Burger), Coyote Saloon (Pizza and Pub) and Inditable (British Indian). Café Benne has also chosen Seoullo Terrace to open their newest concept, Café B. This is a refreshing change from the typical bank and coffee shop retail mix in similarly-sized commercial office buildings, and was made possible by the landlord's willingness to see the potential of the Seoullo 7017 project.
CBRE understands that other landlords in the area with the potential to have a dedicated elevated connection to Seoullo 7017 are reviewing the opportunity.
The success of Seoullo Terrace reflects the additional investments CBRE Korea has made in expanding our Retail leasing capability over the past 18 months. We now have a team of 14 dedicated Retail agents (more than double the number since the start of last year), allowing us to partner with more clients and deliver advantage. Well done to Sohyun Park and Cindy Song from our A&T - Retail team for successfully leasing the Seoullo Terrace on time and ahead of budget. Be sure to look out for a more detailed update on the Seoullo 7017 project and the impact on the surrounding commercial real estate market from our Research team. Until then, if you get the chance to visit Seoullo Terrace, feel free to let us know if you would like any restaurant recommendations.