By Jane Han
Staff Reporter
Starting the first quarter of 2010, the first wave of tenants will be moving into a world class, fully-integrated workplace yet to be experienced in Korea, says the local chief of the world's second-largest commercial property broker, as he referred to the landmark commercial office tower currently under construction in the New Songdo City.
``The era of desks lined up in a row is gone,'' said James Tyrrell, the managing director of Jones Lang LaSalle Korea, in a Korea Times interview Wednesday. ``You must provide a professional work environment to nurture the best professionals.''
Jones Lang is the exclusive leasing agent for the $500 million, 65-story, 1.3 million square feet Northeast Asia Trade Tower (NEATT), co-developed by Gale International and POSCO's construction unit, at the heart of the new business district 40 miles southwest of Seoul.
Tyrrell explained that the new building, with top-notch specifications and a tenant-friendly environment, will maintain the highest standards.
``Both domestic and global companies will be thrilled to rent space,'' he said confidently, adding that there is not much empty office space left in Korea. ``Gangnam and Yeouido lack space, leading to Songdo as the next CBD (central business district).''
The local head of the Chicago-based real estate firm said the Korean market is immature, alleging that most big companies here still own their own buildings.
``Major corporations listed on the New York Stock Exchange don't own the buildings they work in,'' he said. ``The global practice is to use that capital in what they're good at.''
Tyrrell said this mindset, though, is ``slowly, slowly changing here,'' exemplifying investment bank Morgan Stanley's buyout last year of Daewoo Engineering & Construction's Seoul office tower.
Asked whether he's concerned about the distant location of Songdo, Tyrrell said he has no concern about attracting tenants, as he compared the new city to Gangnam. Gangnam is a southern Seoul region dense with office buildings.
``People used to ask, `why would you want to cross the river?''' he said. ``But look at Gangnam today ― everyone wants to get a slice of the action there.''
Aside from the NEATT, Tyrrell fronted another commercial development project, closer to downtown, for which Jones Lang is also responsible for finding tenants.
The dual high-rise office tower, Parc 1, in Yeouido, is set to include a premium mall, luxury hotel and other facilities by 2011.
``Parc 1's market positioning will be on the level of commercial centers in Hong Kong, Shanghai, the U.K. and Singapore,'' said Tyrrell, adding that he's glad to see more advanced development projects finally kicking off in Korea.
He said the main obstacle that blocked earlier projects was the delayed years-long approval process by district government.
``If you want to be a major destination in Asia, you have to team up with the big boys,'' said Tyrrell. ``Korea decided to step up to the plate and get things going.''
He said the steam in the domestic office space rental business will go on for years due to shortage and rising demand.
Aside from the towers in Songdo and Yeouido, separate development projects like the Yongsan ``Dream Hub'' and Saemangeum initiatives are underway for completion within the next 10 years.