If you have a bigger staff size and require a more cost-efficient solution than a serviced office, or if you simply prefer to manage or even own your own office space, then an office building is what you are after.
The advantages of having your own office are:
- You don’t have to share the facilities with other tenants.
- You can design to your own taste, including renovations, furnishings, fittings and finishes.
- You can appoint your own receptionist, secretary, IT guy, cleaner, etc.
The biggest disadvantage is naturally the high initial cost. In addition, there are running costs and maintenance costs.
Main Considerations for Office Building
Some of the factors you may want to consider when renting or purchasing an office are:
a) Budget – rent or purchase within your means.
b) Location – you may want to get an office that is closer to your home, closer to your clients, a place downtown with a prestigious address or if you are applying for MSC status, you will need to locate your business in an MSC Cybercity or Cybercentre.
c) Convenience – consider conveniences like food, public transportation and expressways.
d) Security – with all the crime that is happening in the Klang Valley, security is something that you should consider especially if you expect to be working late nights.
e) Price appreciation – consider the investment value of the property if you are purchasing.
Klang Valley Office Rental Rates & Purchase Prices
Based on NAPIC’s Commercial Property Report, Klang Valley had 104 million sq ft of office space in Q1 2013 – 23% of which is vacant. There will be an additional 26 million sq ft of office space in the next five years, indicating a huge oversupply.
The average asking rental rate for Grade A office buildings in KL city centre (e.g. The Intermark) was RM6.83 psf in Q2 2013, while the rates at the fringe (e.g. KL Sentral) and further (e.g. Jaya 33) were RM6.66 psf and RM5.04 psf respectively.
Popular Areas for Office Buildings in the Klang Valley:
The vicinity of KLCC is the top choice due to the concentration of businesses located in that area. With the high demand but lower supply, rental rates are naturally higher compared to other parts of Klang Valley. The other problem is the bad traffic jam, especially during peak hours – the jam starts from 4:30pm when civil servants leave for home. The situation becomes even worse on Fridays as many Malaysians use Sungai Besi to head south for the weekend.