KUALA LUMPUR: Developers and owners of empty commercial properties are turning their lots into communal workspaces.
This way, they make money while waiting for the property market to improve.
As there is a demand for co-working space in the city, some real estate players are converting their unsold and unrented lots into such communal workspaces.
A co-working office space is one where independently working individuals or small business owners can use to come to work.
The Malaysian Reserve (TMR) quoted Exastrata Solutions Sdn Bhd CEO and chief real estate consultant Adzman Shah Mohd Ariffin as saying: “This will definitely help ease the current commercial glut and over time increase demand for office spaces.
“Although the market would not be able to absorb everything, it will definitely help boost the overall take-up rates.”
Adzman said the booming trend would complement the traditional office spaces rather than create a new form of competition.
There is an oversupply of commercial properties, especially in the city, and this is expected to last at least until next year.
Talking about the trend, JLL Property Services (M) Sdn Bhd associate director of research and consultancy Veena Loh said there was a demand for co-working spaces.
“This sentiment reflects the demand for smaller spaces as it is more economical due to the shorter leasing agreement and more attractive rental packages compared with the traditional workplace,” she told TMR.
The report quoted Savills (M) Sdn Bhd director of research and consultancy Amy Wong as saying communal workplaces were just a different way of using the space as they were designed to suit the younger generation and the concept allowed more opportunities for collaborative efforts among people.
“It is known as a flexible workspace and can be a shared office space, making the place more versatile. It also serves as an alternative to traditional office solutions,” she told TMR.