JLL predicts continued demand for sustainable office buildings in Greater Kuala Lumpur and the Asia Pacific (APAC) region, urging property owners to consider asset enhancements to retain tenants.
Andrew Macpherson, JLL APAC’s head of asset development, said that the key to increasing the value of these assets lies in integrating smart building technologies and premium amenities.
“Enhancing building assets not only aligns with sustainability goals but also meets tenant expectations, ensuring long-term profitability.
“Landlords must act now to retrofit and enhance assets, ensuring they cater to the rising demand for sustainable office spaces,” he said during the company’s recent market insight on office buildings in Greater Kuala Lumpur and across Asia-Pacific last week.
The Malaysian government is currently discussing an Urban Renewal Act, expected to be adopted soon, that aims to facilitate the transformation and upgrade of older buildings.
Yulia Nikulicheva, head of research and consultancy at JLL Malaysia, highlighted the importance of asset enhancement in response to evolving tenant preferences and market demands in Greater Kuala Lumpur.
She noted that upgrades, whether minor or major, can significantly improve building performance and tenant satisfaction.
Nikulicheva pointed out that a large portion of Kuala Lumpur’s office stock consists of older buildings constructed before 2015, with the city submarket having the highest concentration of such properties.
In her report, titled “Leveraging Asset Enhancement to Unlock Real Estate Growth,” she noted that tenant priorities are increasingly focused on spaces aligned with environmental, social, and governance (ESG) commitments.
Nikulicheva also observed that the rising value of green-certified office buildings demonstrates clear performance advantages over non-green properties, significantly impacting vacancy rates and rent levels.
Source: NST Online
