Seven out of 10 domestic startups are considering moving their offices to preemptively respond to the burden of rent and the slowing economy, the survey showed.
According to a survey of startup officials conducted by commercial real estate data company Al Square on the 8th, 71.4% of all respondents (84) said they are “currently considering moving their offices.”
The areas that startups consider as new offices are Gangnam, Yeoksam, Seolleung, and Samsung Station (66.7%), the most common answer. It is interpreted that they still preferred the Gangnam area, which has a large number of investment companies, and has advantages in securing talent, collecting information, and forming a network.
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50% of the respondents said they preferred urban areas such as Gwanghwamun, City Hall, Euljiro, and Jongno. This is because they believe that they can use a more pleasant space with the same rent compared to the Gangnam area. It is also analyzed that the recent increase in the number of companies moving to Gangbuk is also been considered. Yeouido area (YBD) was 13.3%, and Ttukseom and Seongsu stations in Seoul were 10%.
The most common reason for moving the office was “the burden of rent (50.0%).” It is analyzed that the investment market crunch was also reflected in the startup’s office operation plan. It was followed by executives and employees’ demand for relocation (30.0%), preemptive response (26.7%) due to the economic slowdown, and dissatisfaction with the current position (16.7%).
The most important thing for startups in the office was the traffic environment (90.5%) close to subway stations. It was followed by rent (71.4%) and office building facility level (61.9%).
Rapid interest rate hikes and slowing investment markets are also affecting the trend of companies’ office relocation, said Ryu Kang-min, head of the research center. “There will be more cases of focusing on cost-effectiveness rather than forcibly entering key areas to attract talent or creating a grand working environment.”
