When renting an office in Kuala Lumpur, many tenants focus only on the rental rate per sqft. Here are the hidden costs you must budget before signing a tenancy agreement.
Most landlords require:
2 months rental (security deposit) (some require 3 months)
1 month advance rental
Half month utilities deposit
Some building will ask for reinstatement deposit which you will get back after you reinstate back the unit to it bare unit condition
Some building will ask for renovation deposit which you will get back after the renovation is complete
mailbox deposit and other
Example:
Office rental: RM10,000/month
Upfront payment could be around RM25,000 + RM10,000(advance rental) up to RM45,000
This does not include renovation.
If renting a bare unit, renovation can cost:
RM80 – RM300 per sqft (depending on design)
A 2,000 sqft office may require RM200,000 – RM400,000.
This is usually the biggest hidden cost.
For more information visit our previous topic> Cost of renovation for bare unit office
In most Grade A buildings, central air-conditioning runs:
Monday – Friday
8:00am – 6:00pm
After office hours, you must pay:
RM150 – RM300 per hour (per zone)
Companies working overtime often underestimate this cost. Cost of installing a split unit aircond must be consider.
Most of building already include the service charge in their rental
Example
RM6.00 + RM1.50 service charge = RM7.50 per sqft
But always confirm what is cover under the service charge. Some included the aircond during their office hours.
Most building will allocated 1 parking per 1000sqft of your office rent BUT IT IS NOT FREE. Parking in KL city area can cost:
RM200 – RM400 per bay/month (flooting or reserve)
If your company needs 10 bays, that’s RM3,000+ monthly.
Tenancy agreement stamping is mandatory.
For 3-year lease, stamp duty can cost thousands depending on rental amount.
Legal fees may also apply.
Some buildings require:
Renovation deposit
Access card deposit
Signage deposit
These are refundable, but still require upfront cash.
Example: Real Monthly Commitment
Rental: RM15,000
Service charge: RM3,000
Parking: RM2,500
Utilities: RM2,000
Actual monthly cost: RM22,500+ Not RM15,000.
Final Advice
Before signing any office:
✔ Calculate total monthly cost
✔ Calculate total 3-year commitment
✔ Include renovation + deposits
Office rental is not just about price per sqft.
It’s about total financial commitment.
Ahmad Fadli Ayub (Fadli Quzza)
Office Building Specialist
I specialize in office space rental across Kuala Lumpur and Klang Valley. I help companies find the most suitable office based on their requirements, budget, and expansion plans.
My service is 100% free, from shortlisting to viewing and negotiation.
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