KUALA LUMPUR: High-rise industrial developments could become a more established feature of Malaysia’s industrial property market, as land scarcity in established locations drives demand for multi-storey industrial units.
JLL Malaysia industrial and logistics representative Derek Yap said the concept, which is already common in land-scarce markets such as Singapore, had shown encouraging demand in locations such as Petaling Jaya and Bukit Raja.
He cited a multi-storey strata industrial development in Kota Damansara as an example, saying the project had performed well.
More similar developments are expected to enter the market over the next two years.
The potential for such developments is underpinned by sustained demand for industrial space, particularly from the electrical and electronics (E&E), semiconductor, medical devices and automation sectors.
JLL’s property review for the third quarter of 2026 showed that Penang had about 10 million sq ft of Grade A logistics stock, with vacancy rates at between 3 per cent and 5 per cent.
Asking rents ranged from RM3.50 to RM4 per sq ft per month, with island properties commanding higher rates than those on the mainland.
In Johor, Grade A logistics stock stood at about 30 million sq ft, with asking rents of RM2.30 to RM3 per sq ft per month and vacancy rates ranging from 2 per cent to 8 per cent.
Vacancy in key locations such as the Port of Tanjung Pelepas was as low as 2 per cent.
Yap said the appeal of high-rise industrial properties was largely driven by their locations, with investors and occupiers willing to consider multi-storey units as an alternative to conventional single-storey facilities.
He said the trend could gain further traction as developers and businesses look for ways to maximise available industrial land, particularly in established and sought-after locations.