KL Sentral, a transit-oriented development that houses the main railway station of Malaysia, is expected to witness a rise incommercial space this year, when three million sq ft enters themarket.
According to CBRE Malaysia, about 6.7 million sq ft of net lettable space is set for completion in the greater Kuala Lumpur area this year, with approximately 3.4 million sq ft located in suburban Kuala Lumpur.
The real estate services group also noted that KL Sentral will house 80 percent of the suburban KL supply.
KL Sentral benefits from the current trend where tenants search for cheaper rentals or less traffic congestion, and are moving to suburban offices from the city centre. Some estimates indicate this trend will likely accelerate in the coming years.
In 2011, KL Sentral gained more than two million sq ft of office space.
"While the overall development has been a success, parking and access issues are commonly cited, and the rents are typically no lower than those in KL city centre," CBRE said.
Meanwhile, the average gross asking rents for Grade A office space remains flat last year, at between RM6 psf and RM8 psf, while occupancy held at 89 percent.
Though there was a slight decline in office space due to expansion of financial and oil and gas firms, property consultants remain cautious about the excess supply in upcoming commercial space, given the 1.5 million sq ft annual absorption rate of new supply.
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