Office space rentals will continue to feel pressure

By IZZAT RATNA / Pic By MUHD AMIN NAHARUL

Commercial property especially in Klang Valley, is expected to continue to feel the pressure this year with about 18 to million sq ft of new spaces will enter the market in the next few years, says Rahim & Co International Sdn Bhd.

The property consultant firm said the office oversupply would continue to be a bane in Klang Valley as supply would jump to 131 million sq ft.

Rahim & Co said leasing activities continue to move at a slow pace but office spaces in well-connected integrated developments are getting good responses form corporate tenants.

“The key for Klang Valley office market sustainability is not to rely on organic expansion of existing tenants but to bring in new international firms and multinationals to set up office here.

“The roles and collective efforts by both private and public sectors would be crucial along with more attractive incentives to secure new players ,” it said.

The retail sector is also facing a grim future with 69.8 million sq ft of retail spaces are available in Klang Valley with with an average occupancy rate of 85.2%.

Another 18.2 million sq ft are expected to be available over the next four years, adding further pressure on retail mall owners.

The emergence of e-commerce and mobile shopping have become a threat to physical retail malls, forcing mall operators to re-strategise their buildings as not only a place to shop, but a venue of experience and entertainment