We’ve already covered the types of residential properties in Malaysia, so this installment of Property Basics 101 will bring you through the types of commercial properties in the country. Commercial property broadly refers to buildings or land intended for business activities or to generate profit, either from capital gain or rental income.
Shop lots are commercial properties. The ground floor (and second floor, if it has more than 2 storeys) is typically used for business (retail, restaurants, etc), while the upper floors are used as residence. Commercial properties are usually more expensive than residential properties, although in some areas these commercial properties can be cheaper than a normal residential unit. In Malaysia, shop lots like these are commonly referred to as shop-houses.
Shop lots in shopping complexes are also commercial (retail) properties.
In Malaysia, most companies base their offices in commercial office spaces to carry out daily administrative tasks. Suburban office buildings generally include midrise structures of 80,000-400,000 square feet located outside of a city center, whereas high-rise office buildings located in the central business district are in the heart of a city (e.g. Kuala Lumpur).
A hotel is a commercial establishment providing lodging, meals, and other guest services for travellers and tourists. Boutique hotels, in particular, are becoming increasingly popular due to their unique design and relatively cheaper rates, while budget hotels are an affordable alternative for overnight stays.
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. Most companies will opt to have their administrative office at the warehouse.
A factory or manufacturing plant is an industrial site, usually consisting of buildings and machinery, or more commonly a complex having several buildings, where workers manufacture goods or operate machines processing one product into another. Factories are usually located in industrial areas further away from cities or towns.
Industrial land is a piece of land used for industrial purposes, e.g. manufacturing (vehicles, furniture, computers etc.), processing plants (fishing industry, food), storage (containers) etc. It is normally divided into 2 types: heavy industry where large pieces of land is required and pollution (air or sound pollution) is likely to be high, and light industry which may include smaller, cleaner industries. Industrial land are usually placed far away from urban residential areas.
Agricultural land is typically land devoted to agriculture – particularly to rear livestock and crop farming – to produce food. People may also purchase agricultural land to build retirement homes, weekend retreats, resorts, orchards, nurseries, or just pure simple investment. Agricultural land is usually located in remote inland areas without much population, and range upwards of 12,000 sqm (approximately 3 acres).
Of course, this is just an overview of the different types of commercial properties available in Malaysia. There are many other types of commercial properties, some of which have overlapping characteristics and various names, that are listed in the market. Explore Estate123’s listings to discover your ideal commercial properties now!