Factors Influencing Office Building Occupation Decision by Tenants ...

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Yasmin Mohd Adnan, Md Nasir Daudfinancial centre in line with the aspirationto make Kuala Lumpur a world class city,.However, its development strategy for thecity centre is to have a moderate growthin order not to exacerbate the oversupplyof commercial space in the city. Themotivations for striving towards a worldclass status for major cities in the regionare many including national pride and thefact that a world class city is seen as ananswer to the critical problem of makinga successful transition from low wageassembly platforms to technical advancedproduction and high order corporateservice centre (Douglass, 2000).Drawing from the above vision ofturning Kuala Lumpur into a world classcity, there are concerns highlighted in theKuala Lumpur Draft Structure Plan 2020on the commercial development. One ofthe concerns is the over-concentration ofoffice buildings in the city centre -especially of older buildings includingthose vacated by the relocation ofgovernment offices to Putra Jaya (the newgovernment administrative centre) -which are deficient in basic informationcommunication technology (ICT)facilities (Draft Structure Plan KualaLumpur, 2020).In spite of this concern, it has beengenerally noted that in most cities in theworld, the central business district(CBD), or the city centre, is referred toas the heart of the city where there is aconcentration of firms and officeemployment. It can often be regarded asthe engine of city growth which can filterits impact on other parts of the city. TheCBD is also often the focal point of a cityand its population where a highconcentration and diverse range of highvalue activities are found.The aim of the study is to promotethe achievement of the above vision byidentifying the factors consideredimportant by the major firms andorganisations in attracting and retainingthem in Kuala Lumpur, specifically in thecity centre.In this paper, a comprehensive setof factors and sub-factors that mayinfluence office space occupationdecision were first identified from theliterature. Then, a Delphi procedure wasemployed to elicit expert knowledge inidentifying the important factors and subfactorsin Kuala Lumpur. A panel ofexperts comprising property consultantsand property/leasing managers of topquality office buildings participated in thestudy. The result was then to be used inthe determination of the relativeimportance of the factors and sub-factorsacross the different categories of officebuildings’ tenants in Kuala Lumpur citycentre. These tenants were to be selectedfrom top quality office buildings withgrades (Premium, A and B) identifiedfrom an earlier study to classify officebuildings in Malaysia (Yasmin et al,2009).Office Market in Kuala LumpurThere has been a tremendoustransformation of the Kuala Lumpur citycentre since it first started as the centreof trade and later to become the capitalcity. Starting out as a tin mine settlementin 1867, Kuala Lumpur has progressedto attain city status in 1972 with an areaof 92 square kilometres (City Hall ofKuala Lumpur, 1991). Since the 1960sand the 1970s, Kuala Lumpur started to64
Factors Influencing Office Building Occupation Decision by Tenants in Kuala Lumpur city centre – a Delphi Studyportray its position as a centre of tradeand business. As the country progressesand moves past 50 years of independence,the initial central area of businessactivities of Kuala Lumpur, locatedbetween the two rivers of Klang andGombak,has undergone tremendouschanges. The manifestation of its physicalfunction as a centre of business and officelocation activities is seen in theemergence of the Golden Triangle area(the area bounded by Jalan Ampang,Jalan Sultan Ismail and Jalan BukitBintang) which is built upon withinternational hotels and office andcommercial blocks. At the same time, theprevious Central Business District (CBD)of Kuala Lumpur that used to be thetraditional city centre, remains as thebusiness and trade area with colonialeconomic features (Morshidi, 2002).In most large cities, the centralbusiness district is such area as is said tobe dominated by a limited number ofcompetitors in the urban system, and thedominant land uses are associatedtypically with major banks, corporateoffice buildings, department stores,theatres, and other leading business,commercial, or entertainment uses(Kleinberg, 1995). Thus, CBD is easilydistinguishable by its centrality, easyFigure 1: Distribution of Office Buildings by Status, 200065
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