OFFICE
The upcoming 2026 office supply pipeline is becoming a key point of discussion in the Kuala Lumpur market, with several large, high-spec developments scheduled for completion and expected to add further pressure to rental levels. While demand in 2025 has been steady, supported by multinational expansions and continued flight to quality, the volume of new space next year may intensify competition, particularly for older buildings struggling to retain tenants.
RETAIL
In Q4 2025, Malaysia's wholesale and retail trade sector maintained its growth momentum, with total sales in October reaching RM160.9 billion, up 7.2% year-on-year, according to the Department of Statistics Malaysia. The wholesale trade sub-sector recorded a 7.3% increase, while retail trade sales grew 6.8%, supported by broad-based activity across non-specialised and specialised outlets.
INDUSTRIAL
Despite steady completions of new industrial developments across Malaysia, high-quality and well-located warehouses and manufacturing facilities, whether newly built or older assets, continue to experience strong demand and rapid absorption. In key hubs such as the Klang Valley, Johor, and Penang, vacancy rates for prime logistics space have remained low, with medium-to-large built-to-suit and ESG-compliant facilities particularly scarce. Developers are increasingly focusing on targeted projects that meet specific tenant requirements, including cold-chain, pharmaceutical, and e-commerce logistics, to secure pre-leased commitments.
