Munich Personal RePEc Archive

The characteristics of purpose built

offices in Malaysia: a review of issues

Mohd Safian, Edie Ezwan and Bagdad, Mariati and Nawawi,

Abdul Hadi

Universiti Teknologi MARA

5 July 2011

Online at https://mpra.ub.uni-muenchen.de/39422/
MPRA Paper No. 39422, posted 13 Jun 2012 12:52 UTC
Sixth International Conference on Construction in the 21st Century (CITC-VI)
“Construction Challenges in the New Decade”
July 5-7 2011, Kuala Lumpur, Malaysia

The Characteristics of Purpose Built Offices in Malaysia: A Review of Issues

Edie Ezwan Mohd Safian
(Ph.D Candidate, Universiti Teknologi Mara (UiTM), Shah Alam, Selangor, Malaysia)

Mariati bagdad
(Ph.D Candidate, Universiti Teknologi Mara (UiTM), Shah Alam, Selangor, Malaysia)

Abdul Hadi Nawawi

(Professor, Universiti Teknologi Mara (UiTM), Shah Alam, Selangor, Malaysia)

Abstract
The development of purpose-built office market in Malaysia is basically determined by a supply-demand
market. Since the purpose built office market in Malaysia has shown positive developments and
increasing level of competitiveness, many building and locational characteristics have emerged and
become important during the process of assessment of the office property involving property market
appraisal and building performance evaluation. With these characteristics, property market participants
can evaluate their property efficiently based on their needs such as for investment, management, or
business planning. Recently, many new characteristics of purpose built office have also been revealed
according to technology growth and national policy such as green technology, green building index
classification, energy saving and sustainable development. The purpose of this paper is to identify the
existing characteristics of purpose built office in Malaysia and discuss the importance of these
characteristics. Integral to achieving this objective, research on purpose built office characteristics in a
global and local context will also be reviewed. As a result, the issues related to purpose built office
characteristics in Malaysia will be identified, and documented with greater rigor.

Keywords
Purpose-built office, building and locational characteristics, building performance.

1. Introduction

Purpose-built office (PBO) market in Malaysia had shown a positive development since 1990s. Based on
the National Property Information Centre (NAPIC) report, the stability of the economic condition has a
major influence on the PBO market (Napic, 1994). During the rapid economic growth, Malaysia had
enjoyed an increasing demand for PBO contributed by strong economic market, and there has been a
steady increase in development projects conducted by public and private sectors (Rahim & co, 1993).

Due to its growth, PBO had shown to play a vital role in contributing to the property investment portfolio
in the Malaysia office property market. Therefore, office property market had become increasingly
competitive. Many buildings and locational characteristics have been revealed in order to meet the needs
of property market participants and equilibrium of demand-supply in the office property market.

Basically, building and locational characteristics are important to determine building performance such as
grading, classification, green building and sustainable development. However, these characteristics that
have been applied on PBO are different based on its purpose (Mohd Safian, 2010). For example, green
technology had been focused on energy saving while innovation was a main characteristic for sustainable
development.

In addition, building and locational characteristics also have been used to determine office property value,
price as well as rental. Government and private sectors also play a vital role to reveal the new
characteristics of PBO in order to make the office property market competitive and attractive. Therefore,
this paper aims to determine the building and locational characteristics, specifically on PBO and review
the related current issues in the country.

2. Differences of an office building and a purpose-built office

An office building consists of a commercial building that has a main lounge that is specially designed for
the office’s use (Bird, 1996). The objective of developing an office building is to make way for work
spaces and a working environment for administration work, business and also management. The office
space is usually furnished with office equipments, for example, chairs, desks, computers, and other office
equipments that are needed for activities in the office space. Nowadays, an office space is furnished with
sophisticated communication facilities to enable global connections in order to make sure the business
activity and administration run smoothly and effectively such as telephone, fax and high-speed internet
broadband.

An office building is usually divided to several divisions and occupied by different companies. It also
may cover one company in a building based on their business activity, and administration that ran by the
company. Normally, a company's office will include a lobby to greet guests, a few meeting rooms, an
open office space, the manager’s room, and toilets (Bird, 1996). Some office spaces may also have a
pantry or a room to prepare food and drinks, as well as a room to rest or prayer room (Mohd Safian,
2010). As such, employees are free to arrange their personal activities during break hours.

Meanwhile, a purpose built office (PBO) represent an office building that has a main function which is for
office use, and is supported by other services. The main function when combining the initial design is to
optimise the space for its benefit. When about 75% of the initial design is made for office use, the initial
function is changed for a new function (NAPIC, 2007). For example, a PBO is a building which has a
main area that functions for office use and supported by other facilities or services, such as bank, post
office, restaurants, shopping complexes, and retails (Mohd Safian, 2010).

Basically, the term purpose-built office is typically used by few countries such as United Kingdom,
Australia, as well as Malaysia. This intents to distinguish PBO with other commercial buildings or retail
offices. In contrast, United States and Russia, still use conventional term for office building, which is an
‘office building’ or ‘office block’. However, it depends on the PBO or office building itself whereby it
has support services or not. Figure 1, shows the difference of an office building and a purpose built office.
 Figure 1: The difference of an office building and a purpose built office

3. The building and locational characteristics of PBO

Based on the statement by Duntavs (2006), a PBO offers a flexible work environment for growing
companies. This centre is a great value for money without having to compromise on facilities. Therefore,
explanation on the functions of PBO leads to reveal the building and locational characteristics on the PBO
itself. This concept is very important to understand as well as differentiate PBO characteristics with other
commercial building characteristics. The building and locational characteristics of PBO, including
internal and external characteristics can show the identity of PBO itself as a commercial building which is
specifically for office use.

However, each PBO has its own building and locational characteristics depending on its location, design,
age, services as well as the technology that applied in the building. The uniqueness of building and
locational characteristics of PBO can attract investors such as buyers or tenants to invest in PBO. As a
result, the building and locational characteristics of PBO have been taken as criteria in determining the
performance of PBO by valuer or assessor in a relevance area.

These characteristics of PBO can be found in the framework that is based on the building performance
indicators such as green building index, grading, classification, as well as sustainable development model.
Even though there were many characteristics introduced by government or private sectors, the selection of
the reliable characteristics is very complicated. Every building and locational characteristics of PBO are
needed to be adapt with local culture, environment as well as suitable in a related area.

Based on National Institute of Building Sciences (NIBS), there are two basic characteristics of office
building. Firstly, the space attributes which are requiring flexibility, comfort and safety, energy
efficiency, cost-effective and good working environment. Secondly, the building attributes namely safety,
healthy, comfortable, durable, and accessible (NIBS, 2009). These characteristics also have been applied
by other countries such as United Kingdom and Australia, but they have modified it and focused more
details on a certain aspect.
Furthermore, the building and locational characteristics also have been used to determine the quality level
of PBO. With the selection characteristics, the quality level of PBO is ease to identify in order to
categorise the building. With these characteristics, property market participants are free to decide their
investment or business activities on the PBO efficiently. Indirectly, with a clear concept and
understanding on the building and locational characteristics of PBO, it will be significance to the office
property market growth.

In a global context, the building and locational characteristics of PBO have been investigated through
advanced studies. As a result, they can easily develop many indicators for quality level, green building
index, sustainable development, and classification as done by Colliers-United States, BOMA, HK-Beam,
PCA, NIBS and BREEAM. However in Malaysia, the PBO building and locational characteristics studies
is still lacking in terms of having a complete and suitable framework that can use and apply accordance to
all PBO in the country. The reliable framework of building and locational characteristics for PBO is still
in development.

4. The issues of building and locational characteristics in Malaysia

In Malaysia, only few studies have been done by researcher to look into building and locational
characteristics of PBO in the country. However, it shows a positive development whereby Green Building
Index Malaysia (GBIM) was officially launched in May 2009 (Rahardjati et al. 2010). The characteristics
of PBO have been selected and come out with a structured framework to evaluate building performance in
terms of green building.

Furthermore, research on the classification model also helps to identify the building and locational
characteristics of PBO in more details frameworks as done by Rahim & Co (2006), DBKL (2010), Mohd
Safian (2010), and Adnan (2008). Many new characteristics in the classification model have been
revealed during these studies. However, the actual framework on the classification is still in development.
The building and locational characteristics of PBO at the same time are not meeting the needs of property
market participants such as investors, tenants and owners.

Through the study done by Mohd Safian (2010), the main characteristic of PBO in Malaysia is the
presentation, but after the survey had been conducted, number of parking was the main interest by
respondents. The same situation also happened on Green Building Index Malaysia (GBIM), which is an
indoor environment was the main characteristic that chosen by respondents instead of energy efficiency
(Rahardjati et al. 2010). Through that survey as well, innovation is the lower choice by respondents. The
results show the building and locational characteristics of PBO in Malaysia are still not satisfying the
needs of property market participants, and further study should be done.

This paper, however, has identified the building and locational characteristics in a local context that have
been used covering all the research relates. These building and locational characteristics have been
divided into eight groups namely presentation, management, functionality, services, access and
circulation, amenities, green building and sustainable development and location. Table 1, shows the
characteristics and locational of PBO that have been used to evaluate building performance, which are in
grading/classification, green building/green technology, and sustainable development.
 Table 1: The existing building and locational characteristics in Malaysia (2007-2011)

PRESENTATION
Characteristics/ Researcher Grading/ Green buiding/ Sustainable
Locational classification green technology development
External design Mohd Safian (2010), Adnan, et. al / / /
(2008), Rahardjati, et. al (2010),
Darus, et. al (2009), GBIM (2009).
Finishing Mohd Safian (2010), Adnan, et. al / / /
(2008), Rahardjati, et. al (2010),
GBIM (2009), Darus, et. al (2009).
Lobby design Mohd Safian (2010), Adnan, et. al / /
(2008), Darus, et. al (2009).
Number of storey Mohd Safian (2010), Adnan, et. al /
(2008).
Age of building Mohd Safian (2010), Adnan, et. al / /
(2008), Darus, et. al (2009).
MANAGEMENT
Security Mohd Safian (2010), Adnan, et. al /
(2008).
Maintenance policy Mohd Safian (2010), Adnan, et. al / / /
(2008), Rahardjati, et. al (2010),
Darus, et. al (2009), GBIM (2009).
Cleaning services Mohd Safian (2010), Adnan, et. al / /
(2008), Darus, et. al (2009).
Energy saving/ Mohd Safian (2010), Adnan, et. al / / /
recycle policy/ waste (2008), Rahardjati, et. al (2010),
management Darus, et. al (2009), GBIM (2009).
CBMS Mohd Safian (2010), Adnan, et. al /
(2008).
FUNCTIONALITY
Floor size Mohd Safian (2010), Adnan, et. al /
(2008).
Floor ceiling height Mohd Safian (2010), Adnan, et. al /
(2008).
Space efficiency Mohd Safian (2010), Adnan, et. al /
(2008).
Coloumn layout Mohd Safian (2010), Adnan, et. al /
(2008).
Floor loading Mohd Safian (2010), Adnan, et. al /
(2008).
SERVICES
Toilet facilities Mohd Safian (2010), Adnan, et. al / /
(2008), Darus, et. al (2009).
Electrical & IT Mohd Safian (2010), Adnan, et. al /
services (2008),
Work environment Mohd Safian (2010), Adnan, et. al / / /
(2008), Rahardjati, et. al (2010),
Darus, et. al (2009). GBIM (2009).
HVAC Mohd Safian (2010), Adnan, et. al / / /
(2008), Rahardjati, et. al (2010),
Darus, et. al (2009). GBIM (2009).
Ease of services Mohd Safian (2010), Adnan, et. al /
upgrading and (2008).
maintainance
ACCESS AND CIRCULATION
Lift performance Mohd Safian (2010), Adnan, et. al /
(2008).
Lift design Mohd Safian (2010), Adnan, et. al / /
(2008), Darus, et. al (2009).
Number of car park Mohd Safian (2010), Adnan, et. al /
(2008).
Car park ingress from Mohd Safian (2010), Adnan, et. al /
building (2008).
Building way finding Mohd Safian (2010), Adnan, et. al /
(2008).
AMENITIES
Landscape Mohd Safian (2010), Adnan, et. al / /
(2008), Rahardjati, et. al (2010).
GBIM (2009).
Bank, postal, retails Mohd Safian (2010), Adnan, et. al /
(2008).
Gym, health club Mohd Safian (2010), Adnan, et. al /
(2008).
Restaurants/cafe Mohd Safian (2010), Adnan, et. al /
(2008).
Pantry/ children Mohd Safian (2010), Adnan, et. al /
nursery (2008).
GREEN BUILDING & SUSTAINABLE BUILDING
Indoor environment Rahardjati, et. al (2010), Darus, et. / /
quality al (2009). GBIM (2009).
Sustainable site Rahardjati, et. al (2010), Darus, et. / /
planning al (2009), GBIM (2009).
Meterial and Rahardjati, et. al (2010), GBIM /
resources (2009).
Water efficiency Rahardjati, et. al (2010), Darus, et. / /
al (2009), GBIM (2009).
Innovation Rahardjati, et. al (2010), Darus, et. / /
al (2009), GBIM (2009).
Air quality Rahardjati, et. al (2010), GBIM /
(2009).
Thermal confort Rahardjati, et. al (2010), GBIM /
(2009).
Lighting, visual, Rahardjati, et. al (2010), GBIM /
acoustic (2009).
Verification Rahardjati, et. al (2010), GBIM /
(2009).
Construction Rahardjati, et. al (2010), GBIM /
management (2009).
Green product Rahardjati, et. al (2010), GBIM /
(2009).
LOCATION
Location of Adnan, et. al (2008). /
commercial feature
Availability of Adnan, et. al (2008). /
transport options
Transport distance Adnan, et. al (2008), Rahardjati, / /
et. al (2010), GBIM (2009).
Vehicle flow Adnan, et. al (2008), Rahardjati, / /
et. al (2010), GBIM (2009).
Efficiency of property Adnan, et. al (2008). /
markets
5. Results

As a result, based on survey analysis that shown in Table 1, this paper also has identified a new
framework of the building and locational characteristics for PBO in Malaysia as shown in Table 2. These
characteristics are formed from the entire assessment models that have been applied in Malaysia’ PBO.
With this framework, research relates will be more efficient, effective and reliable.

Table 2: The new building and locational characteristics of PBO in Malaysia

CHARACTERISTICS SUB-CHARACTERISTICS
Presentation External design
Finishing
Lobby design
Number of storeys
Age of building
Management Security
Maintenance policy
Cleaning services
Energy saving & recycle policy
Computerise building management system
Functionality Floor size
Floor ceiling height
Space efficiency
Column layout
Floor loading
Services Toilet facilities
Electrical & IT services
Work environment
Heating, ventilation, & air conditioning (HVAC)
Ease of services upgrading and maintenance
Access & circulations Lift performance
Lift design
Number of car park
Car park ingress from building
Building way finding
Amenities Landscape
Bank, postal & other retail
Gym, health club
Restaurant, café
Pantry, children nursery
Green building & sustainable development Indoor environment quality
Sustainable site planning
Material and resources
Water efficiency
Innovation
Location Location of commercial feature
Availability of transport options
Transportation distance
Vehicle flow
Efficiency of property market
The combination with classification model, green building model, and sustainable development model of
PBO characteristics will lead to produce a better framework for assessment of the quality of PBO. It will
cover all type of assessment that can meet the needs of property market participants in one framework.
This framework also will help property market participants to identify their PBO effectively for various
purposes. In such, property market participants will not confuse with a suitable framework or indicator
that they want to use in decision making.

6. Conclusion

Since the government and private sectors have been looking deep to promote new building and locational
characteristics for PBO in Malaysia, detailed elicitation of the characteristics of the PBO is essential. Our
office property market will be drastically increased if the building and locational characteristics of PBO
are meet the needs of property market participants. Due to this, the special research to look on
characteristics and locational must be undertaken in order to facilitate understanding of the building and
locational characteristics of PBO in Malaysia.

7. References

Adnan, M.Y. and Daud, M.N. (2008), Identifying the Potential Criteria and Sub-Criteria for Classification
of Office Buildings in Malaysia, International Real Estate Research Symposium 2008, Kuala Lumpur.

Bird, R. (1996). Defining Quality in New Zealand Office Developments Relative to International
Standards. BOMA New Zealand, Auckland.

Duntavs, A. (2006). Colliers International Baltic Commercial. Real Estate Market Overview 2006, Gauja
Hall.

Mohd Safian, E. E. (2010), Model klasifikasi bagi pejabat binaan khas di kawasan segi tiga emas Kuala
Lumpur, UTHM, Master thesis.

National Property Information Centre (1994). 1994 Property Market Report. Kuala Lumpur, Malaysia:
Valuation and Property Services Department.

National Property Information Centre (2007). 2007 Property Market Report. Kuala Lumpur, Malaysia:
Valuation and Property Services Department.

NIBS (2009). Get Energized about High Performance Building - Apr 02 2009 -
http://www.nibs.org/index.php/nibs/newsevents/news/Entry/getenergizedabouthighperformancebuilding.

Rahardjati, Retno and Khamidi, M. Faris and Idrus, Arazi (2010). The Level of Importance of Criteria
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and Infrastructure (ICSBI 2010), 15-17 June 2010, Kuala Lumpur Convention Centre.

Rahim & Co. (1993). The Klang Valley Office Market – An indication of Trends 1993-2008, Rahim &
Co., Kuala Lumpur.

Zuhairuse Md Darus, Nor Atikah Hashim, Elias Salleh, Lim Chin Haw, Abdul Khalim Abdul Rashid, Siti
Nurhidayah Abdul Manan (2009), Development of Rating System For Sustainable Building In Malaysia.
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2009.