By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 17 2011
THERE will be pressure on owners of old office building in the Klang Valley as they will be forced to refurbish or redevelop their properties to keep tenants.
Landlords of aging buildings will face a threat with 17.1 million sq ft of new office space coming into the market by 2013, said CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen.
To face off competition, Foo said, the landlords will have to consider installing green features and modern facilities to flow with the current trend.
"The only way forward is to demolish the buildings and rebuild," Foo said yesterday in Kuala Lumpur, at the launch of the company's 2011 property market outlook report.
Old buildings in Kuala Lumpur that will be demolished to make way for new projects include Kompleks Antarabangsa and Crowne Plaza Mutiara Hotel on Jalan Sultan Ismail, and Wisma Angkasa Raya on Jalan Ampang. Bangunan MAS, meanwhile, will be upgraded.
Foo said it would cost landlords some RM250 per sq ft (psf)to build a new tower and about RM150 psf to refurbish an old building, of more than 25 years.
"With a fresh look and new facilities, they can raise their rental rates," he said.
Currently, a building more than 10 years old is tenanted at around RM5.00 psf while less than that is going for RM6.00 to RM6.20 psf. For the new office supply, the asking price is RM7.00 to RM7.50 psf, Foo said.
On the new supply, Foo said there could be a challenge by the building owners to fill up the space but it may be overcome if the entry point projects (EPP) under the Economic Transformation Programme (ETP) are implemented yearly.
Foo said with the EPP and ETP, more multi-national companies (MNCs) are expected to relocate here.
"There is strong interest from MNCs from the US and Europe involved in oil & gas, pharmaceuticals and information technology," Foo said.
He said the ETP and EPP will also strengthen the market for residential properties, retail and hotels.
"The landed residential segment will remain the most active this year while we expect moderate growth for the rest of the sectors," Foo said.
-ENDS-
sharen@nstp.com.my
Published in NST on March 17 2011
THERE will be pressure on owners of old office building in the Klang Valley as they will be forced to refurbish or redevelop their properties to keep tenants.
Landlords of aging buildings will face a threat with 17.1 million sq ft of new office space coming into the market by 2013, said CH Williams Talhar & Wong Sdn Bhd managing director Foo Gee Jen.
To face off competition, Foo said, the landlords will have to consider installing green features and modern facilities to flow with the current trend.
"The only way forward is to demolish the buildings and rebuild," Foo said yesterday in Kuala Lumpur, at the launch of the company's 2011 property market outlook report.
Old buildings in Kuala Lumpur that will be demolished to make way for new projects include Kompleks Antarabangsa and Crowne Plaza Mutiara Hotel on Jalan Sultan Ismail, and Wisma Angkasa Raya on Jalan Ampang. Bangunan MAS, meanwhile, will be upgraded.
Foo said it would cost landlords some RM250 per sq ft (psf)to build a new tower and about RM150 psf to refurbish an old building, of more than 25 years.
"With a fresh look and new facilities, they can raise their rental rates," he said.
Currently, a building more than 10 years old is tenanted at around RM5.00 psf while less than that is going for RM6.00 to RM6.20 psf. For the new office supply, the asking price is RM7.00 to RM7.50 psf, Foo said.
On the new supply, Foo said there could be a challenge by the building owners to fill up the space but it may be overcome if the entry point projects (EPP) under the Economic Transformation Programme (ETP) are implemented yearly.
Foo said with the EPP and ETP, more multi-national companies (MNCs) are expected to relocate here.
"There is strong interest from MNCs from the US and Europe involved in oil & gas, pharmaceuticals and information technology," Foo said.
He said the ETP and EPP will also strengthen the market for residential properties, retail and hotels.
"The landed residential segment will remain the most active this year while we expect moderate growth for the rest of the sectors," Foo said.
-ENDS-
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