Industrial property continues to be one of Malaysia’s strongest-performing real estate segments. Entering 2025, Klang Valley is experiencing a noticeable 6–10% increase in industrial rental rates, driven by tight supply, higher business activity, and strong demand from logistics, food manufacturing, and e-commerce operators.
Industrial Rental Rates Up 6–10% in Klang Valley: What’s Driving the 2025 Surge?
Industrial property continues to be one of Malaysia’s strongest-performing real estate segments. Entering 2025, Klang Valley is experiencing a noticeable 6–10% increase in industrial rental rates, driven by tight supply, higher business activity, and strong demand from logistics, food manufacturing, and e-commerce operators.
Prime industrial areas such as Shah Alam, Subang, Bukit Jelutong, Puchong, and Balakong are achieving record-high rentals, making the sector increasingly attractive for investors seeking stable, long-term yield.
What Is Causing Industrial Rents to Increase?
1. Limited Supply of Ready-Built Factories
Across Klang Valley, high-quality semi-D and detached factories are in short supply. Developers have slowed new launches, while most existing stock is fully occupied.
This shortage pushes rental pricing upward, especially for:
- High-ceiling warehouses
- Modern semi-D factories
- Gated & guarded industrial parks
- Grade A logistics facilities
2. Strong Demand From E-Commerce & Last-Mile Delivery
E-commerce growth remains strong in 2025, boosting demand for fulfilment centres, distribution hubs, sorting facilities, and micro-warehouses.
Key hotspots include Shah Alam, Puchong, Klang, Kajang, Seri Kembangan, and Subang Jaya.
3. Food Manufacturing & Cold Storage Expansion
Food processing and cold chain businesses are expanding due to higher consumer demand, export opportunities, and supportive government initiatives.
Cold rooms and temperature-controlled warehouses are achieving premium rentals—10–20% higher than standard factory units.
4. Higher Construction Costs Driving Up Rentals
Increased construction expenses (steel, concrete, labour) have pushed developers to set higher rental benchmarks to maintain returns.
5. Shift Toward Modern Industrial Parks
Businesses prefer newer industrial parks that offer ESG features, solar-ready rooftops, fibre internet, wide road reserves, and efficient loading bays.
Which Klang Valley Areas Saw the Biggest Increase?
- Shah Alam (Section 22, 26, 27, 28, 33): 8–10% increase
- Subang & USJ: 7–9% increase
- Puchong Industrial Area: 6–8% increase
- Balakong & Seri Kembangan: 6–8% increase
- Bukit Jelutong Industrial Park: 8–10% increase
2025 Outlook: Will Industrial Rents Continue Rising?
We expect:
- Continued rental growth for new and modern factories
- High interest from foreign manufacturers entering Malaysia
- Stronger yields for investors in top industrial corridors
- More pre-leasing for upcoming industrial parks
Conclusion
With tight supply, strong occupier demand, and rising operational requirements, Klang Valley industrial rental rates will likely remain elevated throughout 2025. Investors who secure assets early in key industrial zones will benefit from stable rental income and long-term capital appreciation.
