@article{ART002662615},
author={Cho, Hoon Hee and Chang Gyu Choi},
title={A Study on Tenant Improvement in Seoul Office Market},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2020},
volume={30},
number={4},
pages={17-32},
doi={10.35136/krer.30.4.2}
TY - JOUR
AU - Cho, Hoon Hee
AU - Chang Gyu Choi
TI - A Study on Tenant Improvement in Seoul Office Market
JO - Korea Real Estate Review
PY - 2020
VL - 30
IS - 4
PB - korea real estate research institute
SP - 17
EP - 32
SN - 2092-5395
AB - TI is an effective rent support method in which the landlord provides the tenant an allowance for improvements to the office interior. Despite the growing popularity of TI in Seoul office market, there has been no attempt to collect data and study the phenomenon. This study documents the practice of TI, rent free and fit out arrangements. As of the fourth quarter of 2016, 19 buildings were confirmed to provide TI. All of them were large, relatively new buildings with expensive rents, high management and utility costs, and a high vacancy rate.
We have conducted simulations for lease arrangements with varying provisions for rent free, fit out, and TI. The results suggest that the most effective support scheme for the landlord entails rent free and TI in the form of a cash payment towards the cost of building construction, and subsequently depreciated annually by the landlord. On the other hand, the most effective support scheme for the tenant consists of rent free and TI from the landlord, with the TI amount given in cash as an asset of the tenant and depreciated annually.
KW - tenant improvement;TI;interior decoration expense support;rentfree;fitout
DO - 10.35136/krer.30.4.2
ER -
Cho, Hoon Hee and Chang Gyu Choi. (2020). A Study on Tenant Improvement in Seoul Office Market. Korea Real Estate Review, 30(4), 17-32.
Cho, Hoon Hee and Chang Gyu Choi. 2020, "A Study on Tenant Improvement in Seoul Office Market", Korea Real Estate Review, vol.30, no.4 pp.17-32. Available from: doi:10.35136/krer.30.4.2
Cho, Hoon Hee, Chang Gyu Choi "A Study on Tenant Improvement in Seoul Office Market" Korea Real Estate Review 30.4 pp.17-32 (2020) : 17.
Cho, Hoon Hee, Chang Gyu Choi. A Study on Tenant Improvement in Seoul Office Market. 2020; 30(4), 17-32. Available from: doi:10.35136/krer.30.4.2
Cho, Hoon Hee and Chang Gyu Choi. "A Study on Tenant Improvement in Seoul Office Market" Korea Real Estate Review 30, no.4 (2020) : 17-32.doi: 10.35136/krer.30.4.2
Cho, Hoon Hee; Chang Gyu Choi. A Study on Tenant Improvement in Seoul Office Market. Korea Real Estate Review, 30(4), 17-32. doi: 10.35136/krer.30.4.2
Cho, Hoon Hee; Chang Gyu Choi. A Study on Tenant Improvement in Seoul Office Market. Korea Real Estate Review. 2020; 30(4) 17-32. doi: 10.35136/krer.30.4.2
Cho, Hoon Hee, Chang Gyu Choi. A Study on Tenant Improvement in Seoul Office Market. 2020; 30(4), 17-32. Available from: doi:10.35136/krer.30.4.2
Cho, Hoon Hee and Chang Gyu Choi. "A Study on Tenant Improvement in Seoul Office Market" Korea Real Estate Review 30, no.4 (2020) : 17-32.doi: 10.35136/krer.30.4.2