Centerfield in Yeoksam-dong, one of the most prestigious office buildings in Seoul’s Gangnam Business District (GBD), is beginning to show subtle signs of strain. Npixel, a high-profile gaming startup, has vacated two floors—an unusual move in a district known for rock-bottom vacancy rates.

This follows the earlier departure of SSG.COM to Yeongdeungpo, marking a subtle but notable shift in GBD’s leasing landscape.

These moves are more than just isolated cases—they hint at cracks in GBD’s long-standing resilience. Tenants that committed to prime towers during the COVID-era tech and gaming boom are now facing different realities. It’s not just the rent levels, but the mismatch between the scale of their businesses and the premium-level leases they signed at the peak of optimism.

Npixel, founded in 2017 by developers behind Netmarble’s Seven Knights, rose quickly on the back of Gran Saga and achieved unicorn status with over KRW 175.1 billion (~USD 133 million) raised between 2019 and 2021. The company upgraded to Centerfield in 2022, leasing floors 12 to 14.

But momentum slowed. Performance lagged expectations, and losses piled up. By the end of 2024, cash reserves had shrunk to KRW 13.1 billion (~USD 10 million). The company ultimately gave up two of its three leased floors—roughly 7,300㎡ in Centerfield West—after determining it could no longer justify the premium rent. The decision signals how business fundamentals—not just rental levels—are prompting a recalibration of office strategies.

Krafton, currently the largest tenant at Centerfield, occupies floors 28–35 in the East Tower. Directly below, AWS Korea leases three floors, one of which remains unused. Krafton requested to take over AWS’s vacant floor, but the landlord declined. Instead, Krafton expanded into the two floors vacated by Npixel.

Still, this is a stopgap. Krafton is developing a new headquarters in Seongsu-dong—a B8–17F tower spanning 218,093㎡, built by Samsung C&T. Completion is expected in November 2027, with full relocation set for 2028. Though Krafton’s lease at Centerfield runs until April 2032, it includes an early termination option. Market attention is now turning to how Centerfield will absorb that upcoming vacancy.

A senior CRE executive put it plainly: “Centerfield has been the crown jewel of Gangnam, but now we’ll see how deep the tenant pool really is at the top of the market.”

This case marks more than a tenant shuffle—it reflects a turning point. Even GBD, long viewed as the gold standard in office markets, is now subject to real pressures. As leases signed during the boom era unwind and tenants right-size for a new cycle, the question is no longer whether prime buildings will face challenges—but how they’ll respond when they do.

This article was originally published in Corebeat on May 22, 2025.