Updates on KL Office

16 Aug, 2022
Category: Real Estate
Tags: Purpose Built Office

Aside from certain areas, the office landscape in Klang Valley is pretty healthy.

We always have the perception that Klang Valley is facing an oversupply of office space. This statement is true if we only focus on the city center area of Kuala Lumpur. If you look at other areas, the occupancy rate and future supply are pretty healthy.

With a large educated workforce, low wages, weakening RInggit Malaysia and low rental rate per sqft compared to other major cities, it makes sense for a lot of MNCs to set up their back office or BPO to set up their operations center in Kuala Lumpur.

I may start looking at office Reits that have tech companies as tenants as soon as Fed ends the hiking cycle. JLL’s research and database, Real Estate Intelligence Services (REIS), shows that tech companies are largely located in KL Sentral, KL Eco City, Mid Valley City, and Bangsar South

Source of Data:

PBO Rental

PBO Inventory

PBO Supply Demand Gap

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