KUALA LUMPUR: Malaysia is increasingly being recognised as a key beneficiary of the global real estate transformation, as multinational corporations seek to align their real estate portfolios with operational resilience, sustainability and future-ready workspaces.
According to Knight Frank’s (Y)OUR SPACE 2025 global report, as corporates worldwide confront economic volatility, geopolitical risks and the need to rapidly adapt to digital transformation, 50% of global occupiers expect their real estate footprint to grow in the next three to five years, representing 104 million sq ft of new space.
This positions Malaysia firmly on the radar of global investors and occupiers.
“Knight Frank Malaysia has seen increasing interest from multinationals looking to establish regional headquarters, high-spec industrial hubs and sustainable logistics solutions in Kuala Lumpur, Johor and Penang.
“The demand is particularly strong among firms focused on advanced manufacturing, technology and regional distribution,” the real estate consultancy firm said in a statement yesterday.
Knight Frank Malaysia group managing director Keith Ooi said that Malaysia offers the right mix of cost efficiency, political stability and market access that global occupiers are looking for today.
“What truly sets us apart now is the growing quality of our industrial and office spaces – they are being designed with resilience, environmental, social and governance or ESG-readiness, and long-term adaptability in mind,” he said.
The research shows that corporate real estate leaders are prioritising enhanced operational efficiency and resilience, cited by 38% of respondents, ranking above ESG compliance or innovation.
This reflected a flight to functionality, where occupiers prefer shorter lease terms, hybrid-ready layouts, and location strategies built around risk diversification and talent access. About 63% of respondents prioritise purposeful and adaptable amenities over prestige-focused features, underscoring a shift toward practical design and measurable performance. — Bernama
