Some of the most expensive markets for office space fall into the Asia-Pacific region, but with co-working and flexible office space on the rise, businesses are still able to secure office space in some of the most competitive cities, including one of Asia’s top strategic markets, Kuala Lumpur.
With a fast-growing entrepreneurial ecosystem, skilled workforce and business-friendly environment, the Malaysian capital is a dynamic hub of activity for domestic and international markets. Among the top 10 cities in Asia for its economic health, technological aptitude and connectivity, it’s no surprise Kuala Lumpur is also home to a thriving flexible workspace market.
Asia-Pacific is one of the fastest growing regions for flex workspace in the world, with supply of new centres increasing by 16% in the past year. With a 12% increase in supply, Kuala Lumpur is among the region’s top 20 cities with the fastest growing flexible workspace markets overall.
Alongside cities like coworking space in Hong Kong, Bangkok and Jakarta has seen a steady increase as businesses of all sizes look to enter new markets in more strategic and cost-effective ways.
Rise of Flexible Workspace in Kuala Lumpur
In 2017, flexible workspace centre supply in Kuala Lumpur grew by 36%, making it the fastest growing key city in the APAC region, outpacing fast-growing markets in Gurugram, Chennai, Brisbane, Hong Kong and Sydney.
In 2018 the Malaysian capital saw double-digit growth again, with a12% increase in supply as the market levelled out due to increased competition. More mature markets in Singapore saw 9% growth.
“What’s fascinating about the market in Kuala Lumpur is that we are starting to see a head start on the likes of WeWork, which has only just opened doors here. Common Ground has eight buildings in KL already and is arguably the “go to” for the kind of layout and urban environment that WeWork has delivered so well globally.
The Colony is another interesting operator that has launched a boutique option with a heavy focus on service and design, incorporating an in-house nursery for working mothers, which is brilliantly forward thinking.
Compass, a leading provider across Asia, has just opened doors here with a very clean fit-out that breaks away from the traditional corporate look and feel it was previously famous for. As a market, KL is evolving from your typical serviced operator and now moving into the next phase of service-focused flex space.”
– Danny Babington, Director of Operator Relations – Asia-Pacific
Average Desk Costs in Kuala Lumpur
| Area | Average Desk Cost | Number of Flex Centres |
|---|---|---|
| Overall | RM 886 | 112 |
| Kuala Lumpur City Centre | RM 843 | |
| Kuala Lumpur Sentral | RM 797 |
In Kuala Lumpur hybrid space, a combination of serviced offices and co-working space, has seen massive growth at 31%, while pure co-working space and serviced offices have seen 10% and 7% growth respectively. An average desk rate of RM 886 across the city indicates the strength of the market.
Flexible Centre Growth in Kuala Lumpur
| Flex Office Market Growth in 2018 | Serviced | Co-Working | Hybrid |
|---|---|---|---|
| 12% | 7% | 10% | 31% |
As reported in our Asia-Pacific Flexible Workspace Report last year, The Instant Group delivered two innovative workspaces in Kuala Lumpur for AMEX and IT company Datacom. The managed office solution, where Instant leases and runs the space on behalf of the client, saw 90,000 sq. ft. of flexible office space being delivered for over 1,100 employees.As more businesses swap the constraints of traditional offices for flexible workspace, corporates and international firms are also making use of this low-cost, low-risk way of sampling the local market.
Additional research by Instant Offices, which collates more than 20 years of data, shows businesses can save up to 73% by choosing flexible office space over conventional leased space in the world’s major cities.
Flexible Office Space in Kuala Lumpur
The city’s ecommerce sector has grown 46% since 2015, according to the Global Start-up Ecosystem Report 2018, with major sub-sector strengths including big data & analytics and healthtech.
Outside of China, the region is the first to implement Alibaba’s City Brain tech, an AI platform that tracks cameras citywide to monitor traffic control and accidents. In Kuala Lumpur, the government also has plans to use the tech in areas like safety, environment, energy, waste management and more.
The innovative and collaborative business culture has seen demand for flexible workspace grow in key cities across Malaysia.
City Centre
Average Desk Cost: RM 843
As one of the most expensive places for flexible workspace in Kuala Lumpur, many office spaces are located outside the City Centre. However, businesses still have options to choose from with co-working space, serviced offices and hybrid space available.
Sentral
Average Desk Cost: RM 797
Businesses looking to secure office space in this exclusive urban centre are spoilt for choice. With global connectivity and access to Malaysia’s largest transportation hub, Sentral offers an international ambience and unrivalled convenience.
More key areas in Kuala Lumpur for business include:
- Damansara Heights: an affluent, highly-developed area and one of the most sought after addresses in the city.
- Bangsar South: a fully integrated residential and commercial hub that boasts excellent transport connectivity and facilities.
- Mont Kiara: an affluent prime location in Kuala Lumpur, well connected by major highways with an abundance of green space.
- Petaling Jaya: A major Malaysian city and key commercial district, including retail hubs, hotels and attractions.
- Subang Jaya: Situated close to the Kuala Lumpur city centre and home to several higher learning institutions, Subang Jaya is a busy, fast-paced city.
Browse flexible office space for rent in Kuala Lumpur.
