The Challenge
Sarah had been investing in residential condominiums for a decade, but yields were compressing. Her latest KL condo was returning just 3.2% after maintenance fees, and capital appreciation had stalled. A business contact mentioned industrial property — higher yields, lower maintenance, longer leases — but the market felt opaque.
She searched online for "industrial property investment Malaysia" and found pages of listings but no guidance. What makes a good industrial investment? Which areas are growing? What do tenants look for? The portals offered properties but no advisory context. Sarah didn't need another listing — she needed someone who understood industrial fundamentals.
Our Approach
When Sarah contacted IndustrialKL, our advisor started with education, not listings. We walked through the fundamentals of industrial property investment: how rental yields typically range from 5-7% (compared to residential 2-4%), why industrial tenants sign longer leases (3-5 years vs 1-year residential), and how infrastructure development drives value.
Our advisor then provided a focused analysis of three areas in Greater KL where we saw the strongest investment fundamentals:
- Jenjarom: Emerging industrial corridor with new highway access, current yields of 5.5-6.5%, strong appreciation potential
- Shah Alam Section 23: Established industrial area, stable 5-6% yields, high tenant demand
- Telok Panglima Garang: Early-stage development area near the port, lower entry prices, higher risk-reward ratio
Based on Sarah's budget of RM2M and preference for moderate risk, our advisor focused the search on Shah Alam — established demand, strong infrastructure, and a track record of steady appreciation.
The Result
Sarah purchased a 5,000 sqft single-storey factory in Shah Alam Section 23 for RM1.85M. Within two weeks, our advisor introduced a tenant — a precision engineering company — who signed a 3-year lease at RM9,500 per month, delivering a gross yield of 6.16%.
Three years later, comparable units in the same area were transacting at RM2.4M, representing approximately 30% capital appreciation. The tenant renewed for another 3-year term with a 10% rental increase. Sarah's industrial investment outperformed every residential unit in her portfolio.
Client Perspective
"I knew nothing about industrial property. IndustrialKL didn't just find me a property — they taught me how the market works. My factory in Shah Alam has been the best-performing asset in my portfolio for three years running."
— Sarah, property investor, Kuala Lumpur