PETALING JAYA: The establishment of the Johor-Singapore Special Economic Zone (JS-SEZ) and the impending completion of the Johor Bahru-Singapore Rapid Transit System link are expected to boost cross-border movement and office space demand in Johor Bahru, said IGB Property Management Sdn Bhd’s director Wong Khim Chon.

He said the demand for office space in the state has been on the rise since the reopening of Malaysia’s borders and the transition to the endemic phase in April last year, which is driven by economic growth and stability.

“Moreover, certain industries may undergo rapid growth or changes, influencing their office space requirements,” he told Bernama.

Wong said the surge is particularly evident during periods of economic expansion as businesses experience growth, leading to an increased need for office space to support expanding operations.

However, he said despite the intensifying competition in the commercial property market due to the influx of new developments, the company remained steadfast in its commitment to providing superior specifications tailored to the specific needs of tenants.

He said IGB’s primary focus is on prioritising the tenants’ businesses, ensuring that they thrive within well-designed and strategically located towers.

Commenting on the office space offered at the North Tower @ Mid Valley Southkey, he said currently, the committed occupancy at the North Tower is about 30% of the total net lettable area of about 327,000 sq ft.

The completion of South Tower @ Mid Valley Southkey is targeted for the second quarter of next year, the company said.

Regarding the potential addition of more towers in Mid Valley Southkey in the future, Wong said if there is an increased demand in the Johor market for office space, the company would certainly be interested in exploring the possibility of adding more towers.

“At the moment, we have prospective tenants, including international and local companies from various industries, such as financial institutions and foreign government agencies,” Wong added.

Mid Valley Southkey, IGB Group’s mixed-use development sprawled over 8.98 hectares of land, has rapidly evolved into a bustling hub of commerce, leisure, and lifestyle, offering various services for its visitors.

IGB Bhd has more than 404.68 hectares of landbank in Selangor, Kuala Lumpur, Negeri Sembilan, Pahang, Perak, and Johor.

As at 3.37pm, IGB’s share price was up by one sen or 0.46% at RM2.20, giving it a market capitalisation of RM2.99 billion.