Kuala Lumpur records 853,000sq ft of office pipeline for 2025

Some developments are moving the completion date from 2027 to 2026.

In a recent report, JLL said The Exchange Campus @ TRX, adding 210,000 sq ft was completed by the end of March 2025. This building is certified with LEED Gold standard as this feature blends the nature and the workspace in an innovative way, as the tenants can have direct access to the TRX 10-acre park.

“The pipeline in 2025, encompasses about 853,000 sq ft of office spaces. Key developments like The Capitol and UOA Duo Tower are now accelerating completion to 2026 from their original 2027 schedule,” the report added.

Here’s more from JLL:

Office demand in KL is driven by financial and tech sectors, with notable expansion within their current buildings or upgrading to newer buildings that offer competitive rates and better support for modern operations, a clear flight to quality from aging properties.

Minimal growth in quarterly absorption as businesses are adopting conservative expansion strategies by delaying major operational decisions due to policy uncertainties, rising electricity costs and anticipated SST adjustments.

Balancing market absorption in more customized leasing solutions through attractive tenancy offerings

Mixed rental trend across submarkets, influenced by landlords are offering enhanced incentive packages, including competitive rental rates and longer rent-free period, particularly buildings anticipating longer tenant absorption.

In contrast, rental rates for well- located, green buildings have remained resilient, supported by strong demand for sustainable and high-quality workspaces.

Outlook: Premium Office space remain with their unwavering values regardless of market fluctuation

High specs buildings with green certificates will continue to command unwavering position as landlords remain confident in their tenant attraction power despite market challenges.

The upcoming implementation of SST will impact businesses with RM1,000,000 threshold. In view of our precautious stance, considering the tenant-driven market and the global economic conditions, the rental trends may experience a moderate but nonetheless steady growth trajectory.