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“Navigating Malaysia’s Industrial Property Market: Addressing Oversupply Challenges”
Malaysia’s industrial real estate market has seen remarkable growth in recent years, with an estimated 39 million sq ft of industrial properties currently available. However, with an additional 14.9 million sq ft of industrial space set to enter the market soon from developments like E-Metrohub, YTL-BRIIC Phase 2, Axis TPG, Mapletree, Daiwa House, Axis Bukit Raja, LYL, Storio Hub, Mitsui, ALP, and Atrium Reit, the question arises: will there be an oversupply of industrial properties?
In this article, we will delve into the key developments in Malaysia’s industrial real estate market, examining the consequences of overbuilding, the impact of generic advertising strategies, and the ongoing challenge of maintaining tenancy.
The Consequence of Overbuilding: A Battle for Tenants
The oversupply of industrial properties in the market presents a significant challenge for industrial suppliers, who now face the task of convincing tenants to choose their properties. The result is a highly competitive market where suppliers must differentiate themselves to attract potential tenants. This oversupply exerts pressure on rental rates and incentives, making it essential for suppliers to offer unique selling propositions and attractive lease terms.
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Agent’s Conventional Sales Approach: Quantity Over Quality
A key issue property agents face in the industrial real estate market is the focus on the quantity of sales rather than quality. Many agents resort to generic, cookie-cutter advertising strategies that aim to attract a broad audience.
However, this approach often fails to effectively target the right audience and may result in a lack of genuine interest. As the saying goes: “If you sell to everybody, you sell to nobody.”
Agents must rethink their marketing strategies, develop a minimum viable product (MVP), conduct A/B testing for their marketing campaigns, and constantly optimize their narratives to appeal to tenants and buyers.
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Tenancy is an Ongoing Challenge
Even when industrial units are filled, maintaining tenancy remains a challenge for industrial property owners. The nature of industrial businesses often involves fluctuating demands, expansions, or downsizing, leading to potential vacancies.
Property owners must maintain strong relationships with existing tenants, understand their evolving needs, and proactively address any concerns. Moreover, offering value-added services and flexible lease terms can help attract and retain tenants in a highly competitive market.
Malaysia’s industrial real estate market is booming, with many industrial properties available. However, the consequences of overbuilding, generic advertising strategies, and the ongoing challenge of tenancy pose significant hurdles for suppliers and property owners.
To navigate this market successfully, engage with My Industrial Specialist to help you differentiate yourself, target the right audience, and adapt to the ever-changing needs of tenants.
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