We presented to you market analysis for Co-working Space/ Shared Services Industry. What are the current challenges? And what would be the right mitigation plans to help you to minimize your business risks. Herewith, I attached my personal hustler back when I decided to leave my 9 to 5 job. It was not an easy transition period, but I was lucky to have an opportunity to learn valuable tips from with my IDOL PERSONALITY the late Datuk Maznah Hamid.

1. CO-WORKING SPACE INDUSTRY
MARKET SURVEY & RISK MITIGATION PLANS
BASED ON MARKET ANALYSIS REPORTED by PROPERTY AGENCIES
SHARED BY #DHBASIA
copyright@2019

2. CONTENT
• MARKET OVERVIEW 2018 REPORTED BY VARIOUS PROPERTY
AGENCIES
• CURRENT RENTAL RATES FOR OFFICE SPACES IN KLANG
VALLEY 2018
• PMSD PROBLEM STATEMENT
• TARGET OCCUPANCY RATES? OR TARGET REVENUE?
• WHAT DO WE NEED TO DO NEXT?
• MARKETING STRATEGY – RECOMMENDATION
• PROPOSED MARKETING KIT
• MARKETING TIMELINE

3. MARKET SURVEY BY VARIOUS
PROPERTY AGENCY
• MARKET OVERVIEW 2018 REPORTED BY FRANK & KNIGHT
• The respondents were generally not satisfied with the performance of
the office and retail segments in 2017 and expect it to worsen in 2018.
• Rental value of office - 50% of the respondents expect rental to fall in
the office & retail sub-sectors.
• Occupancy Rates for Office - 51% and 54% of the respondents expect
occupancy level of office and retail to decrease.
• On the overall outlook of the office market in 2018, the market will
stay stagnant, if not worsen, due to a total of 7.6 million sqft of office
space entering the current oversupplied market in 2018 and 1.2
million sqft in 2019.

4. MARKET OVERVIEW 2018 REPORTED BY
CBRE-WTW
➢ older buildings will not be able to compete with the newer
supplies — especially in terms of pricing points — as the fresh
stocks are equipped with high-speed Internet, lifts and other
advanced facilities
➢ Therefore, older buildings would probably have to refurbish
their assets or convert them into other accommodation
facilities such as hotels or residences in order to survive.
➢ the average vacancy rate for existing office spaces is hovering
from 16% to 17% with an average prime rental of RM7 per sqft
and between 5.5% and 6% in yields.
➢ hence, the concern is only for the older stocks that are slowly
losing tenants’ interests due to increasing numbers of new
supplies, which
➢ offer more attractive start-up leasing packages and are located
at more strategic areas within an integrated surrounding.
MARKET SURVEY BY VARIOUS PROPERTY
AGENCY

5. TECHNOLOGY PARK MALAYSIA
RM 3 – RM 4 .50 per sqft
As low as RM 1700
As low as RM 83 per day
OTHER CBD
RM 5 – RM 7 per sqft
LOCATION?
AMENITIES?
OTHER ADD ON SERVICES?
LOCATION?
AMENITIES?
OTHER ADD ON
SERVICES?
CURRENT MARKET RENTAL VALUE FOR OFFICE SPACES
IN KLANG VALLEY 2018

6. OCCUPANCY RATE DECLINED OVERALL REVENUE IN 2017 DECREASED
FROM RM900k TO RM700k
PMSD PROBLEM STATEMENT

7. WHAT DO WE NEED TO DO NEXT?
• Decrease the rental rates?
• Upgrade the amenities?
• Major renovation on the building?
• Minor renovation on the building?
• Create more parking space?
• Offer the parking charges for Free? Competitive? Lowest from
the market rate?

8. REALISTIC MEASUREMENT
WE HAVE TO ACHIEVE SOMETHING RATHER
THAN NOTHING

9. Proposed action plan to ensure
TPM’s BUSINESS TURNOVER is still
remain Competitive & Viable in
the market

10. PROPOSED ACTION PLANS
INCREASE IN OCCUPANCY RATE?
BUT….lower in revenue percentage?
INCREASE IN REVENUE?
BUT…lower in occupancy rates?
✓realistically we have to define our action plan with minimum risks
✓set new marketing approach to stay relevant in the market
✓set new marketing direction to race against all odds

11. IN-HOUSE SURVEY THE RESULT
1. IS TPM /Bukit Jalil (In KL) a good location for your prospect? if No , why ?
Yes and no as it is depending on tenant’s profile, office requirement,
preferred location etc..
2. You have sent the information on the rentable area required to your
client, but they have KIV TPM ( not shortlisted) ? Reasons ?
Examples : lacking of public transport systems?, Far from city center ?
3. Yes, your prospects have shortlisted TPM . But viewing is pending because
of Examples; Merger , funding from overseas , change of Mgmt.
Due to the current challenge market, the funding is the main criteria.
4. What is your prospect’s respond towards our asking rental rate RM3.50
to RM4.00 per sq. ft. (inclusive air conditioning during office hours) ?
TPM is TIER 1 MSC Status reasonable or …?
It is very attractive rental offer, however nowadays some tenants are
looking for fit out contribution due to the budget issue.

12. 1. IS TPM /Bukit Jalil (In KL) a good location for your prospect ? if No , why ?
Yes it is but accessibility for those taking public transport can be improved by providing
dedicated shuttle bus service to and from the LRT Station. Many people are switching to
using this mode of transport now. Making TPM easy to access from the closest LRT Station
(or stations) will be a huge bonus
2. You have sent the information on the rentable area required to your client , but they
have KIV TPM ( not shortlisted) ? Reasons ?
Examples : lacking of public transport systems, Far from city centre
Perception of TPM being dated, Bukit Jalil area not being very well-known or sought after as
an area which is attractive for companies to attract the right kind of talent. Strategic
Marketing of the amenities provided by TPM as ‘extras’ would be good (like shuttle bus,
creating a community etc)
3. Yes, your prospects have shortlisted TPM . But viewing is pending because of
…………………….Examples; Merger , funding from overseas , change of Mgmt.
Various reasons – government approvals, board approvals. Mine so far have not been a
function of Bukit Jalil itself but more of an internal company issue.
4. What is your prospect’s respond towards our asking rental rate RM3.50 to RM4.00 per
sq. ft.
( inclusive air conditioning during office hours) ? TPM is TIER 1 MSC Status - reasonable or
…? Very attractive. They appreciate that they can get this rate for a Tier 1 MSC building.
IN-HOUSE SURVEY THE RESULT

13. IN-HOUSE SURVEY
THE RESULT
OTHER OPINIONS :
• Many prospects are looking for fully fitted spaces currently, so that they can start operations quickly once a site is chosen.
• Many tech and BPO companies cannot always determine their ramp up in headcount within the space of 3 years. They will also not
take on the maximum amount of space at the beginning. Landlords need to look into being flexible with offering expansion space within
6 months, 12 months, 18months, etc. Situations like this go against the standard terms of a tenancy agreement. Landlords who are not
flexible or are not in-tune with this emerging trend will lose out on potential tenants.
• Having an active Tenant Engagement Strategy will become increasingly important. This is an avenue to fostering loyalty among
your tenants and ensure longevity of tenancies.
• Continuous look at improving the upkeep and maintenance of TPM as a whole and also the various buildings. Renovating the lift system
toilets, lobbies, common areas etc.

14. MARKETING STRATEGY
& RECOMMENDATION
• New marketing concept “STORY TELLING” approach just like
NIKE/IPHONE/etc to promote strong & bold profiling of TPM
• To create logo for “YOUR SUCCESS BEGINS HERE”
• To create a marketing video for “YOUR SUCCESS BEGINS HERE”
• All marketing campaign would be focussing on the success story
of incubatees, start-up & sme’s.

15. MARKETING KIT &
RECOMMENDATION
#1 BROCHURES
FLYERS
#2
MARKETING VIDEO –
TESTIMONY FROM THE
CURRENT TENANT
#3
PRESENTATION
DECK

16. RECOMMENDED MARKETING STRATEGY
– THE RATIONALE
• The marketing campaign will be based on limited resources
• Follow the current market trends – audio visual
• Highlight “VALUE FOR MONEY” sentiment to the potential customer
• Minimum investment that create big impact on the product’s look &
feel
• For a long term branding purposes all marketing action plan should be
geared into promoting TPM via Story Telling Approach rather than
promoting numbers or physical elements in any marketing campaign

17. THANK YOU