Turning office gluts into urban living spaces

AMID discussions swirling over the redevelopment and revitalisation of cities and urban areas that have ignited passions across Malaysia’s political spectrum, property developers owning underutilised or empty buildings, such as office towers, are finding ways to sustain their business by converting them into residential spaces to address the growing need for housing.

One such move was recently announced by Land & General Bhd, which is spending RM45mil to convert an office building it owns in Putrajaya into serviced apartments, responding to the glut of office space in the nation’s administrative capital.

Conversations about revitalising urban cores should start with people and housing.

The oversupply of office space in the Klang Valley, particularly Kuala Lumpur, is acute, with high vacancy rates for older buildings within the city’s inner core.

Businesses are relocating to suburban commercial hubs or to Petaling Jaya, where new offices offer seamless technology connections, efficient space use and compliance with environmental, social and governance requirements.

Older office buildings, some dating back to the 1970s, should be converted into residential towers targeting specific market segments such as young professionals, young families, low-income families, migrant workers, or even expatriates who prefer the vibrant urban lifestyle over vanilla conformity of the suburbs.

Here, the government can play a clear role by establishing rules for converting office buildings into housing.

In certain areas, it could even offer grants if the housing is intended for low-income Malaysians.

In the United States, unoccupied malls are being turned into housing.

Similarly, there is a strong case to ensure that our inner-city cores remain vibrant and not become empty shells after office hours.