Prime KL office rental to continue decline
KUALA LUMPUR, Dec 18 — Prime office rentals in Kuala Lumpur are projected to continue declining in the next 12 months on increasing supply of new office space and as low occupancy levels remain the main concerns of the industry.
According to the “Asia-Pacific Prime Office Rental Index for the third quarter (Q3) of 2017” report by global property consultant, Knight Frank, prime office rentals declined 0.4 per cent in the third quarter (Q3) compared to the previous quarter.
“As a growing number of new office space comes into completion amid weaker occupier demand, overall rents and occupancy levels will continue to be under pressure.
“In this tenant-led market, landlords continue to be flexible as they strive to maintain and improve occupancy of their buildings,” said Knight Frank Malaysia Corporate Services executive director Teh Young Khean in a statement today.
In contrast, prime rents in Singapore increased for the first time since late 2014, even as vacancy rates continued to rise above 15 per cent due to the huge supply influx in the last two quarters. — Bernama