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KL City Fringe office occupancy rate overtakes KL City in 2H2015

By theedgeproperty.com.my | Feb 23, 2016

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KUALA LUMPUR : Occupancy rates of office properties in Kuala Lumpur City Fringe (KL City Fringe) inched up 89.3% in 2H2015 while KL City decreased to 82.5%, according to international real estate services firm Knight Frank.

Knight Frank’s recently-issued report shows the average occupancy rate in KL City has decreased from 84.8% in 1H2015 to 82.5% in 2H2015, while the rate in KL City Fringe (includes areas such as KL Sentral, Mid Valley City,Bangsar and Pantai) has marginally increased from 87.9% to 89.3%.

However, the average achieved rental rates in both KL City and KL City Fringe remained flat at RM6.17 psf and RM5.70 psf respectively.

“Going forward, KL and Beyond KL (Selangor) office markets are expected to face further downward pressures due to the high level of existing and impending supply coupled with a weaker leasing market,” the report showed.

However, the firm believes rental rates of well-located good grade, dual-compliant office space will remain resilient in 2016 despite expectations that the overall rental rate will dip over a period of time due to heightened competition in a tenant-favoured environment.

The report also estimates that there is an additional 1.9 million sq ft of incoming supply space in 1H2016, which includes Public Mutual Tower in KL City; Menara Ken @ TTDI; Menara Hong Leong’s office Tower A in Damansara City; Tower 2 of Mercu Mustapha Kamal at Neo Damansara; and Iconic Tower (Block N) at Empire City.

Tags: office space, commercial office



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