Shopping complex occupancy rises slightly y-o-y in 2023, office space remains flat

• Based on Napic’s Property Market Report 2023 released on Wednesday, the occupancy rate of shopping complex retail space in 2023 rose to 77.4% — 13.69 million square meters (sq m) occupied of 17.69 million sq m total space — versus 2022’s 75.4% (13.2 million sq m occupied of 17.51 million sq m total space).

KAJANG (March 6): The occupancy rates of shopping complex retail space in Malaysia improved by two percentage points year-on-year (y-o-y) in 2023, while the occupancy rate of purpose-built office space remained unchanged, according to the National Property Information Centre (Napic).

Based on Napic’s Property Market Report 2023 released on Wednesday, the occupancy rate of shopping complex retail space in 2023 rose to 77.4% — 13.69 million square meters (sq m) occupied of 17.69 million sq m total space — versus 2022’s 75.4% (13.2 million sq m occupied of 17.51 million sq m total space).

The retail space market saw the completion of nine new shopping complexes adding nearly 220,000 sq m of retail space in 2023, according to Napic.

For purpose-built offices in Malaysia, the occupancy rate was flat at 78.5% (19.55 million sq m occupied of 24.88 million sq m total space) compared to the same rate (19.07 million sq m occupied of 24.3 million sq m total space) in 2022.

Napic said there were 13 new purpose-built offices completed in 2023 offering 400,000 sq m in new office space.

In terms of incoming supply recorded in 2023 amid construction, Napic noted 1.25 million sq m (40 buildings) in purpose-built office space and 1.13 million sq m (33 buildings) in shopping complex retail space.

The Klang Valley Shopping Centre Rental Index stood at 109.7 points (average rental of RM97.29 per sq m) in 2023, up 1.4% from 108.1 points (RM95.9 per sq m) in 2022. 

But the Klang Valley Purpose-Built Office Rental Index declined 0.5% y-o-y to 130.2 (average rental of RM48.30 per sq m) in 2023 versus 130.8 (RM48.53 per sq m) in 2022.

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