Industrial Property Demand Trends in 2025: Logistics, Data Centres & E-Commerce

Malaysia’s industrial property sector continues to evolve rapidly in 2025, driven by a digital economy, regional trade shifts, and infrastructure upgrades. Developers, investors, and REITs are increasingly eyeing assets that support logistics, e-commerce, and digital infrastructure. This article examines key demand trends and where the hotspots are for each growing sector.

1. Last-Mile Logistics Driving Urban Warehouse Demand

As online retail booms, logistics firms are racing to meet same-day and next-day delivery standards. This has created strong demand for:

• Urban and edge-of-city warehouses for staging and dispatch
• Smaller, ramp-up units for local 3PL players and SME fulfillment
• Quick access to expressways like LDP, NKVE, KESAS, and ELITE

Hot locations: Shah Alam Section 22 & 26, Puchong, Sungai Buloh, Kajang, and Johor Bahru fringe zones.

2. Cold Chain Logistics Expanding with Food & Pharma

Cold chain infrastructure is in high demand due to:

• Rising consumption of fresh produce and dairy
• Halal-certified export food processing
• Temperature-controlled pharma distribution

Investors are seeking land or warehouses to retrofit with cold rooms, insulated docks, and backup power.

Hot locations: Kapar, Telok Gong, Senai Airport City, Nilai Tech Park

3. Data Centres Fueling Demand for Strategic Industrial Land

Malaysia is fast becoming a regional hub for hyperscale data centres. Tech giants and colocation operators are seeking:

• Land with high-power availability (TNB grid + dual power feeds)
• Access to submarine cable landing stations (e.g., in Johor & Cyberjaya)
• Stable terrain, low flood risk zones

Demand is especially strong for industrial parks that offer redundant power, fibre optics, and government incentives.

Hot locations: Sedenak Tech Park (Johor), Cyberjaya, Elmina East, Bukit Jalil

4. E-Commerce & 3PL Fulfillment Centres

Warehousing demand from e-commerce platforms and their third-party logistics (3PL) partners remains strong. Requirements include:

• Minimum 80,000 – 200,000 sq. ft. warehouse footprint
• Clear ceiling height of 9m–12m
• Large marshalling yards and multiple dock levellers

Land near airports, seaports, and major highways is in high demand for such facilities.

Hot locations: Pulau Indah, Westport, KLIA Aeropolis, Bandar Enstek

Start Your Search for Industrial and Logistics Properties

• Browse Industrial Factories and Warehouses for Sale
• Explore Industrial Land Investment Opportunities
• See Logistics-Compatible Commercial Properties

Whether you're targeting last-mile warehousing or large-scale digital infrastructure, 2025 offers strong fundamentals for industrial investment. Understanding sector-specific needs will help you future-proof your real estate portfolio.