Many businesses choose shop fitouts in Canberra to maximize space and to improve operational efficiency and environmental aesthetics. The workplace is essentially the second home of the workforce and if the environment is comfortable, the employees are more focused, productive and efficient.
According to Savill’s Greater KL Shop Market Overview 1st QTR Report, Greater Kuala Lumpur has the largest shop stock totalling 126 million square feet in ASEAN. It is second to Hong Kong with 127 square feet at US$20.58 per square foot. According to Knight Frank’s 1st QTR Asia-Pacific Prime Shop Rental Index 2019, Kuala Lumpur is the most affordable at US$1.39 per square foot.
Kuala Lumpur has the largest supply of shop spaces and yet it has the lowest rental rate. This is due to massive overbuilding over the last decade. Consultancies have given warnings on the growing supply 7 years ago but others have downplayed the situation saying that it is all right to have an occupancy rate of 75%. Kuala Lumpur’s occupancy rate was 79.7% as of the last QTR of 2018.
Shop rental rates have been going down over the last several quarters. Landlords are forced to offer rent-free periods and free shop fitouts. However, in spite of the incentives, the take-up rate for shop space year-to-date is negative. Industry sources say that the situation is a serious concern particularly since more shop blocks are being completed.
The stock of shop space in Greater Kuala Lumpur is equivalent to about 40 PETRONAS Twin Towers that has shop space totalling to about 3.2 million square feet. At least 400,000 square feet of new shops were completed last March.
As more shop spaces are being built, there will be a battle for quality which will have a negative effect on existing shops. Completions of new supply and launches are decreasing slightly but vacancies are expected to increase.
When planning for shop fitouts in Canberra, it is important to consider the nature of the business, the environment and its requirements. There must be an estimate of the fitout costs so that your goals can be realized without going over budget. Designers have substantial experience in helping with themes and design concepts.