KUALA LUMPUR: 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 of 2017 report by global property consultant Knight Frank, prime office rentals declined 0.4% 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.
In contrast, prime rents in Singapore increased for the first time since late 2014, even as vacancy rates continued to rise above 15% due to the huge supply influx in the last two quarters. — Bernama