Commercial real estate activity is one of the key tangible barometers to track the health of the economy. A constantly changing landscape, with its cyclical swings, commercial real estate activity is a leading indicator for expected expansionary activities of business entities. Examples of large companies like Apple Inc., buying/leasing commercial space in emerging economies is a sign of the redistribution/expansion of the company’s activities in the future.
Commercial real estate ownership and leasing were previously a mom and pop business before sophisticated/qualified investors started looking at it as a long-term asset class that can provide abnormal/extraordinary returns. Opening up of capital market activity for real estate through investment vehicles, such as REITs, and REOCs in the stock market and innovative products, such as commercial mortgage-backed securities, etc., have been key to the success of the commercial real estate sector. These initiatives have financed commercial real estate construction and management activity to a large extent, over the last 50 years or more.
The market research study on the commercial real estate market in Malaysia focuses on the market activity within the key subsectors, such as offices, retail, industrial and multifamily.
Key cities of Malaysia are covered in the study, based on the population, city level GDP, business and commercial construction activity, demographics and other factors.
Key Factors Affecting the Commercial Real Estate Market:
Economic Activity/Policy, Exchange Rate, Inflation and Employment Activity
A major factor that affects the value of real estate is the health of the economy. Economic indicators, such as the GDP, employment data, manufacturing activity, inflation, exchange rate fluctuations, interest rates, mortgage rates, etc., are the measuring criteria. When the economy is sluggish, it affects the health of the real estate. However, the cyclicality of the economy can have varying effects on different types of real estate. The revenues/returns in the hospitality sector during economic downtime are more vulnerable than that of office space since office spaces are secured through long-term leases and in other cases through outright purchase. Hotel occupancy cycles are very short and, hence, there is significant loss/lack of return on investments made in the hospitality sector real estate, as compared to the office sector real estate.
Economic activity in Malaysia is tracked key cities level and is considered as the cornerstone of the market research study. This establishes the blueprint for determining the way forward, given the current interrelation between macroeconomics and commercial real estate in Malaysia.
Real estate has been, for the most part, one of the most favoured investment options for long-term value retention and its ability to generate returns higher than any other investment classes. Over the past two decades, the development of commercial real estate capital market, in particular- expansion of the markets for equity and debt securities, has transformed the industry. This has provided exceptional capital availability and pricing, reshaping valuation metrics. Thus, heavily influencing the private capital formation and providing investors with a greater selection of investment, hedging and arbitrage opportunities. With shortening business cycles and volatile economic trends, sourcing suitable funds, while ensuring maximum returns, has become a challenging task.
After buyouts, real estate is a sector with the highest private equity funds’ disbursement, annually, for almost the last two decades, as observed through available data.
In the report, the private equity activity, credit availability for commercial real estate, and other instruments, such as commercial mortgage backed securities, are tracked in Malaysia and its key regions/cities.
Asset Class Performance
Technology continues to be an agent of change in all the areas of business and industry; the real estate market is no exception. The remarkable growth in new applications is changing commercial real estate, for the better. Everyone from brokers, property managers to developers and tenants, benefit from the new tools that boost productivity while saving cost.
Some of the technology trends emerging in the commercial real estate market are-
Sample Commercial Real Estate Market Statistics
The commercial real estate market in Malaysia report/study will contain data, analysis, commentary and infographics specific to the country and key cities covered.
Full and detailed analysis provided in the full report…
1. Executive Summary
2. Research Methodology
3. CRE Market in Malaysia- Industry Outlook
3.1 GDP and Economic Activity
3.2 Consumer Confidence
3.4 Employment Rate
3.5 Interest Rates
3.6 Household Wealth
4. Regulatory Environment,CRE Laws and Key Policy Initiatives for the CRE Market in Malaysia
5. CRE Market in Malaysia -Market Dynamics
5.5 Technological Innovations
5.6 EHS Trends
5.7 Porter's Five Forces Analysis
6. CRE Industry in Malaysia -Value Chain Analysis
7. CRE Market in Malaysia -Market Data Analysis By Property Type
7.1.1 Market Size (USD million)
7.1.2 Total Supply:Historical and Forecast
7.1.3 Occupancy Rate and Vacancy Rate
7.1.4 Absorption Rate(%)
7.1.5 New Units/Project Launches
7.1.6 Market Share Analysis by Configuration, End Sector, etc
7.1.7 Market Trends (Average Capital Value Trends, Average Rental Values, Others)
7.2.1 Market Size (USD million)
7.2.2 Total Supply:Historical and Forecast
7.2.3 Occupancy Rate and Vacancy Rate
7.2.4 Absorption Rate(%)
7.2.5 New Units/Project Launches
7.2.6 Market Share Analysis by Configuration, End Sector, etc
7.2.7 Market Trends (Average Capital Value Trends, Average Rental Values, Others)
7.3.1 Market Size (USD million)
7.3.2 Total Supply:Historical and Forecast
7.3.3 Occupancy Rate and Vacancy Rate
7.3.4 Absorption Rate(%)
7.3.5 New Units/Project Launches
7.3.6 Market Share Analysis by Configuration, End Sector, etc
7.3.7 Market Trends (Average Capital Value Trends, Average Rental Values, Others)
7.4.1 Market Size (USD million)
7.4.2 Total Supply:Historical and Forecast
7.4.3 Occupancy Rate and Vacancy Rate
7.4.4 Absorption Rate(%)
7.4.5 New Units/Project Launches
7.4.6 Market Share Analysis by Configuration, End Sector, etc
7.4.7 Market Trends (Average Capital Value Trends, Average Rental Values, Others)
8. CRE Market in Malaysia - Investment Analysis
8.1 Direct Investment (Public, Private, PERE and PPP)
8.2 Indirect Investment (REITs, REOCs, Others)
9. Competitive Landscape of the CRE Market in Malaysia
9.1 Market Share Analysis
9.2 Key Player Profiles
9.2.1 Player Portfolio (Area Developed; Completed, Ongoing & Future Projects)
9.2.2 Property Sectors Covered
9.2.3 Technological Advances
9.2.4 Services offered
CRE Commerical Real Estate
GDP Gross Domestic Product
EHS Environmental, Health and Safety
PERE Private Equity in Real Estate
PPP Public Private Partnerships
REIT Real Estate Investment Trusts
REOC Real Estate Operating Companies