Asia Pacific Office Outlook 2024

KUALA LUMPUR

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 There is approximately 3.3 million sf of new supply across five projects expected to complete in 2024. In total they are 30% pre-committed.  After 2024, new supply is

 While the economic uncertainties remain, flight to-quality relocations are still ongoing, as are right sizing exercises by MNCs looking to refresh their traditional office set ups.  Net absorption is expected to reach 5.2 msf in 2024 and almost 2.5 msf in 2025.  As a result of good demand being offset by large amounts of new supply, vacancy is expected to remain stable at 26% by the

 Rents are forecast to slightly decrease by 0.02% in 2024 and then a further 0.001% in 2025 before returning to positive territory in 2026 at 0.003%.  This movement will take rents to MYR 80.40 sf at the end of 2024.

 As demand recovers, we continue to observe flight to-quality, decentralization and ESG requirement trends.  There is a robust take-up of office space, especially for office buildings with good transport connections and a variety of amenities, that

forecast to decline to an average of a little under 500,000 sf per year.

offer tempting leasing bargains within the KL Fringe and Decentralised areas.

end of 2024 and then largely track sideways.