How much rent do we need to make a feasible logistics center development in Greater Seoul now?
2023. 02. 23 · Victor Yongmin Jun
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Korean logistics center market has explosively grown for the last 10 years, now we are stepping into a new era. The market was once dominated by only a few foreign investors, and last few years was very crowded and confusing with too many players. Korean logistics has become one of the major sectors in CRE in Korea already, and will further grow with full of potential opportunities.
After storms of heavy investment and development last few years, the logistics center market is facing a new era that has to admit the interest rate hike and soaring of construction cost. Given the situation, how much rent do we have to expect to reach the typical investment yield if we have to develop a logistics center in Greater Seoul? Case 1) Mountain type logistics center GFA 13,000py (land area 8,500py) Case 2) Ramp type logistics center GFA 30,000py (land area 8,500py) Case 1 Even though land price has undergone a sudden change in the course of interest rate hike, it is assumed a unit price per pyung […]
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Victor Yongmin Jun
Director, Hocosin Inc.
Victor worked as an industrial & logistics professional conducting transaction & leasing advisory at CBRE Korea since 2011 and thus has a relatively deep understanding of the Korean logistics investment market and history. After CBRE, he joined Colony Capital Korea branch, the real estate private equity firm headquartered in Los Angeles, where he was in charge of investment analysis of logistics center, data center, and other sectors. He was highly involved in the outbound fundraising from Korean LPs into Colony’s signature NPL funds as well. He is working at Hocosin Inc. as a logistics center developer and also providing advisory services to diverse investors.
Major Career
CBRE Korea Industrial & Logistics transaction & leasing advisory
Colony Capital Korea branch investment analyst & fundraising support
PK Invest (Family Office) Investment
CCIM Korea Chapter International Committee Chair (2019~2021)
University of Michigan, Ann Arbor (Bachelor of Arts, Economics)
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