Office owners need to up their game
Joseph Wong | 12 Jul 2019 00:30
Owners of Grade B and Grade C offices will need to up their game if they want to remain competitive in the persistently tough market.
The situation is further exacerbated with more Grade A offices entering the already oversupplied market, offering competitive rates with state-of-theart trimmings.
“With office supply remaining elevated, especially in the Kuala Lumpur city centre, office rental rates are expected to continue to come under pressure in the short- to mid-term, with a total of circa 11.7 million sq ft (more than 70%) of incoming supply expected to come on stream in the near term from 2Q 2019 to 2021.
“Currently, the existing stock of Prime A+ and Grade A office space is estimated at 35.7 million sq ft as of 1Q 2019,” says international property consultancy Knight Frank Malaysia corporate services executive director Teh Young Khean.
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