Greater pressure on office rental seen in one to two years

KUALA LUMPUR: Office rental is expected to come under greater pressure in about a year or two with landlords going as far as giving longer rent-free periods of up to six months and upon renewal of tenancy, said Sarkunan Subramaniam, managing director of real estate consultancy Knight Frank Malaysia.

The other feature of the office space segment would be higher vacancies in older buildings as tenants opt for newer buildings with green and Multimedia Super Corridor status, he said.