KUALA LUMPUR (March 29): The country’s shopping malls saw an average annual occupancy rate of 88% in 2020, according to a survey by the Malaysia Shopping Mall Association (PPK Malaysia).

The average monthly gross rental rate (per sq ft of net lettable area or NLA) was RM6.73, the PPK Malaysia Shopping Industry Survey showed.

Meanwhile, average monthly mall expenses per sq ft of NLA in 2020 stood at RM2.50, with the expenses ranging from 27 sen to RM5.77. The expenses included electricity, water, insurance, marketing, sewerage, quit rent, assessment, and property maintenance.

PPK Malaysia said the average monthly service charge and promotional charge per sq ft of NLA in 2020 stood at RM2.17, with the charge ranging from 30 sen to RM6.54.

“Based on the above trends, Malaysia’ shopping industry offers approximately 185.8 million square feet of NLA, with an estimated real estate value of RM145 billion. The industry is also estimated to provide direct employment to an approximate range of 50,000 and 60,000 people, excluding employees of malls’ tenants/shop,” the association said in a statement.

PPK Malaysia said the survey involved 50 participating shopping malls in the first three quarters of 2020, where the respondents comprised a mix of mall positioning, with differences in quality of building finishes and services provided, and were of various sizes.

This is the ninth industry survey that PPK Malaysia has conducted since 2002. The survey was conducted in collaboration with market research company Stratos Pinnacle Sdn Bhd, using self-administered email questionnaires.

The association said the surveys are important in terms of assisting both asset owners and decision-makers to develop key benchmarks for the optimal management of shopping malls.