“Shops & Shop-Offices” in Desa Sri Hartamas, Kuala Lumpur

What are shop-lots and shop-offices?  Usually, they are commercial buildings of between 2 to 4 stories, where ground floors (generally referred to as “shop-lots”) are used as retail lots, such as boutiques, restaurants, banks, clinics and etc.  Floors above ground are normally offices (generally referred to as: “shop-offices”).

Shops and shop-offices are critical to the success of a particular mixed-developed area because they provide “amenities” which residents (either residential or commercial) around the neighbourhood “need”.  Grocery, convenience shops, coffee-shops & cafés, clinics, banks and others are provided for via shop-lots, and in some instances, upper floors as well (Examples: Bangsar & Hartamas).  In successful residential (sometimes cum commercial) neighbourhood, people converge in this commercial enclave day-in day-out.  Typical examples come to mind are: SS2, Damansara Uptown, Desa Sri Hartamas, Bangsar to name a few.  In all these areas, the “shops & shop-offices” area is always busy from morning to night, either weekday or weekend (though there are some slight differences between areas such SS2 & Uptown).

Hence, I would say that such area is the “Locational Centre of Gravity” of a “suburb”.  Locational Centre of Gravity” (LCG) is defined as a “spot or a place where human activities and accessibility are easy and supreme.  Like in the middle of everything” (Chin Soon’s Real Estate Mantra: LOCATION, TIMING AND BRANDING, page29).  Hence, the LCG of Desa Sri Hartamas will be the commercial centre where the shops are: the square “sandwiched” between Jalan 19/70A, Jalan 22/70A and Jalan 23/70A.  Here, all activities gravitate towards this area.

The next critical factor ensuring the success of those shops and shop-offices is what is commonly referred to as:  the “tenant-mix”.  In Desa Sri Hartamas (DSH), the tenant-mix is “good” i.e. they have “variety” of different retails, ranging from salons, spas,  eateries, restaurants, cafes, medical, banking, tuition centres and etc.  In a way, good tenant-mix provides the needed amenities.  This, in turn, ensures the area is well-patronised.  And as a corollary therefore, this type of real estate commands a premium price.

We take the example of Desa Sri Hartamas (DSH).  The surrounding residential area stretches from Mont’ Kiara (& Segambut Dalam), Sri Hartamas, Damansara Heights & Medan Damansara and they boast a sizable “quality” population, as these areas are considered “high-end” residential enclaves.  The LCG of this section will be the commercial area of DSH comprising Jalan 23/70A to Jalan 31/70A.  A total of more than 133 units of 4-storey shop-office lots, which will in turn give you more than 500 units of shops & shop-offices, with approximately 90% occupancy.  The tenant-mix is good – restaurants (local & Oriental, Western, Japanese, Korean & Middle-Eastern), boutiques, clinics, car wash, and other amenities such as laundry, banks and etc.  This area is packed with people most of the time.  And despite it’s being termed as “mature” area, investors and property-owners continue to invest in, either for own-use or for investment.

The 2^nd factor determining its LCG status is – accessibility (Chin Soon’s Real Estate Mantra: LOCATION, TIMING AND BRANDING, page39).  In DSH, it’s easily accessible practically from anywhere within KL & PJ.  It’s connected via Lebuhraya Sprint, Penchala Link & Jalan DUTA.  From KL North, one can take DUKE which is connected to Jalan DUTA which straight hits DSH.  From KL South, take Jalan DUTA straight.  From PJ, one can either take Sprint, the LDP connecting to Penchala Link or Federal Highway connecting Kerinchi Link which will hit Sprint within minutes.

Recent transactions (from Dec 2008 to Dec 2010) in DSH suggest an increase of 10% in value of its intermediate unit – from RM3Mil to RM3.3Mil, whereas end-lot units are transacted at above RM5.5Mil, despite its “mature" status.  This is proof of investor-confidence in the area.


For more information on Desa Sri Hartamas commercial real estates, you can email me at: kh_yklim@yahoo.com & visit my iagent website at: http://limyk.iagent.my/ for specific listing.  I will from time to time, feature some DSH listings in this blog.  Stay-tuned.  I welcome any constructive and critical comments on the contents of this blog.