KUALA LUMPUR: Real estate investment trust's (REIT) industrial segment is likely to have the sector's highest rental growth in the coming years, driven by the rapid growth in e-commerce.
RHB Research said infrastructure investments are vital to underpinning the segment's growth, and Malaysia ranks third behind Singapore and Vietnam as the logistics hub of choice in Southeast Asia.
"A few prominent multi-national corporations (MNCs) have chosen Malaysia to be their regional distribution centres, including IKEA, Lazada, Nestle, and BMW.
"Logistic facilities with smart systems such as automated storage and retrieval systems (ASRS) will be able to command a higher rental rate," the bank-backed research firm said in a note today.
During the recently hosted talk with Knight Frank, RHB Research said that despite the work from the home trend over the past two years, offices are still important to companies for a corporate image.
The talk focused on emerging trends for the property sector and touched on growth opportunities of niche sectors such as workers' accommodation and data centres – in line with its positive view of the industrial segment.
RHB Research said landlords who successfully reinvent their office space with better collaboration space and flexibility would likely attract more tenants.
"For retail, anchor malls in the Klang Valley will continue to remain relevant, with the rise in e-retailing having a more negative impact on mid-sized malls.
"Compared to Lalaport, Pavilion Bukit Jalil mall seems to have better prospects given its design, location, and the strength of its leasing team," it added.
RHB has maintained its 'Neutral' call on REITs, with the sector's top picks including Axis REIT and IGB REIT.