2026 Korea Logistics Market Outlook

SUMMARY

• Although new supply for logistics centers is projected at 1.75 million sq m nationwide and 1.40 million sq m in the SMA in 2026, cold storage supply is expected to remain relatively constrained.
• The dry storage leasing market is expected to extend its recovery, supported by continued growth in online sales penetration and improving distribution efficiency, with rents projected to climb and vacancy rate expected to decline further.
• Amid active trading of large-scale and core assets, total investment volume in 2026 is projected to edge up from last year’s level.
• As investment sentiment toward logistics centers gradually improves, both domestic and foreign institutional investors are expected to increase participation, with the Cap. Rate for 2026 projected to compress modestly - settling around the 5% mark