KUALA LUMPUR: Boustead Properties Bhd remains optimistic about the performance of its commercial and retail portfolio this year, with hybrid workplaces and vaccination rollout shaping how businesses adapt to the Covid-19 pandemic.
The property developer said in what was seen as a recovery year despite challenges posed by the pandemic, occupancy of its commercial space was expected to continue to grow.
The occupancy rates of the company's commercial assets were currently above 90 per cent, higher than the average occupancy rate of similar grade buildings within similar locations, it said.
Its latest addition, Nucleus Tower, an MSC Cybercentre status, and GBI Gold Grade A office tower which occupies a prominent corner site within the Mutiara Damansara area, is set to increase its occupancy to 95 per cent come the third quarter (Q3) of 2021.
Boustead Properties senior general manager property management and investment Jazmi Kamarudin said while the utilisation of office space was evolving, rental, ready facilities, security, digitalisation and the location of commercial real estate would be key drivers for the sector.
"Affordable offices that provide a flexible, technology-compatible workspace are still considered crucial as companies require employees to engage and collaborate while maintaining a safe environment.
"Investments in commercial properties will also be reliant on property and financial incentives," he said.
He added that as certain businesses had expanded during the pandemic, some of these, including those in e-commerce, selected grocery brands, and logistics would need larger or additional spaces to operate from.
"By adapting and reimagining how we market office and retail spaces in these changing times, Boustead Properties plans to move forward, spurred on by Boustead Holdings' Reinventing Boustead strategy which intends to unlock value and tap the benefits of digitalisation through harnessing the fit-for-purpose technology," he added.
Under its mall operations, Boustead Properties said the Curve in Mutiara Damansara continued to maintain a commendable occupancy rate of 90 per cent despite a generally soft retail market.
Following plans to redevelop eCurve and tenant movements, Boustead Properties said between January and June 2021, it had welcomed 13 new retail tenants ranging from food and beverage, fashion, services and furniture.
"Our mall has been relatively protected in the current retail climate.
"With more new tenants expected in the second half of 2021, we expect the mall to remain resilient and reach 95 per cent occupancy by the year-end," said Jazmi.