Monday, April 30, 2012

Commercial space boom set to chug into KL Sentral

Business Times: Mon, Apr 30
THE transit hub of KL Sentral is expected to see a boom in commercial space this year, when three million square feet or 45 per cent of Kuala Lumpur's new office space comes onto the market.

An estimated 6.7 million sq ft of net lettable space is scheduled to be completed in the greater Kuala Lumpur area, with about 3.4 million sq ft located in suburban Kuala Lumpur, according to CBRE Malaysia.

KL Sentral will house 80 per cent of the suburban KL supply, the real estate consultancy said in a fourth-quarter 2011 report.

KL Sentral is a key beneficiary of the current trend where tenants are searching for cheaper rentals or less traffic congestion, and are relocating from the city centre to suburban offices. Projections indicate this trend is likely to accelerate in coming years.

Last year, KL Sentral gained over two million sq ft of office space.

As a transit hub - its train station is a major point for the commuter, light rail transit and KLIA Express - KL Sentral has grown exponentially in the past few years with multinational companies signing on and because of the area's Multimedia Super Corridor status. Firms based in the KL Sentral area are entitled to certain tax benefits if they meet the criteria.

Kuala Lumpur Sentral CBD, as it is called by government-linked developer MRCB, is a "fully-planned CBD" spanning 72 acres of integrated development comprising Grade A offices, hotels, retail and luxury condominiums.

Even so, the effect of so much commercial space coming onstream in a relatively short period remains to be seen...
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Team Marshe
Martin Koh/ Sherry Tang
9383-3992/ 9844-4400

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