Top Grade Office Space Faces Growing Pressure

TRX



PNB 118


The PNB group chairman Tan Sri Zeti Aziz had assured there is no cause worries in securing tenants for Merdeka 118 that given. Besides, they have carved out a niche segment.

There are few grade A office buildings in Malaysia are high occupancy rates. The grade A buildings such as Petronas Twin Tower with occupancy rate (100%), Menara 3 (100%), The Intermark (85%), KYM Tower @ Mutiara Damansara (81%), Menara Prudential (85%), and Axiata Tower (72%).

The property consultancy MacReal International Sdn Bhd founder Michael Kong says that rental rates for grade A office buildings in KL city and KL fringe are RM7 to RM11 per sqft, and RM 6 to RM 8.50 per sqft. For the lower grade will be RM 6 to RM 7, and RM 5 to RM 6 per sqft.

According to the Building Owners and Managers Association International, office spaces are categorized into three classes which is A, B and C. The professionally-managed buildings attract quality tenants as well as command premium rental rates.

Note that the recently-completed Exchange 106 at the Tun Razak Exchange (TRX) is adding to the supply with its 2.65million sqft of premium office space.

In the Real Estate Highlights Second Half of 2019 report, Knight Frank Malaysia says that while 20% pre-committed occupancy, there is further pressure exerted on the prime A+ office segment in the upcoming financial district of TRX.

On the positive note, in Budget 2020 has announced there are encourage more inbound investment from Fortune 500 companies and ‘global unicorns’ in the high technology, manufacturing, creative and new economic sectors over the next five years.

Therefore, office buildings that able to achieve high-occupancy rates, those offering different features, accessibility, secure and reasonable-priced parking space, as well as attractive leasing packages.  


Source: Thestar @ Biz Property