December 16, 2015 | Sharon Cheong
The Kuala Lumpur economy grew at a steady rate, underpinned by private sector demand. Commercial real estate supported by other economic divisions with business owners looking for affordable leases in the region. The Malaysian economy remains on a steady growth track with domestic demand functioning as a key driver of development amid lower oil prices. Investors are taking advantage of the lower prices and a good supply of commercial real estate in the region.
The Stable Import Export Industry
Private consumption is expected to be satisfactory with households adjusting to the new Goods and Services Tax (GST). The need for affordable commercial real estate has underscored by a steady rise in the import-export trade. With stable labor markets and thriving household spending, investors are looking for new commercial property for expansion. The recovery in global growth remains steady supported by manufactured exports. With over 3 million square feet of new office space under construction throughout Malaysia, commercial real estate should be a bustling area of growth.
Green Commercial Space Now Available
Rent and lease values in commercial real estate have also remained steady with developers expected to be more cautious with future commercial projects. Buildings near the new KL Sentral green lifestyle mall have become highly sought. With plenty of transportation, restaurants, theaters and other attractions, investors view this area of Kuala Lumpur with confidence. The current supply and demand for the upscale commercial real estate are strengthened by the stunning contemporary architecture and beautiful panoramic views of the city.
Dependable Transportation throughout the City
The demand for upscale suburban commercial space is also increasing due to unbeatable prices. Rail links near Kuala Lumpur Stesen Sentral make access to the city very easy from most outlying areas. Though some businesses do require impressive downtown addresses, other companies can easily work from suburban parts of the city. These buildings have ample parking spaces, high-speed lifts, and reliable broadband services, just to name a few of the amenities.
Commercial Space Cutbacks
Though some industrial and retail businesses are becoming more cautious about expansion, select business sectors are still growing and need more commercial space for their company. Further slowdowns in the oil industry are expected, and these cutbacks have caused a weakening in occupancy rates in the Golden Triangle vicinity. The newer commercial real estate is converting to all-natural green construction practices that translate to higher rental rates in the long run.
Green Buildings in Kuala Lumpur
These newer commercial buildings are very attractive to prospective tenants who desire a better quality work environment. This leaves the older properties either lowering their rates or renovating so they can compete. Though landlords of the older commercial real estate rentals have reduced prices to some extent, the vacancy rates make these buildings a great deal for new startups with limited capital.
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