TUTORIAL: RETAIL/COMMERCIAL

A 10-hectare site has been identified for commercial development. The site is
located in Petaling Jaya, Selangor which becomes the main commercial hub in the
area. The following data have been obtained:

Existing Supply:
Location No. of Shop-houses
Occupancy Rate
Area A 340 53%
Area B 270 86%
Area C 740 67%
Area D 340 88%

Short-term Supply:
Location No. of Shop-houses
Area A 60
Area B 120
Area C 65
Area D 55

Employment rate by sector in Selangor as obtained from the Statistical Department

is as follows:

Sektor Peratus
(Sector) (Percentage)

Pertanian, Perhutanan, Ternakan & Perikanan 22.5

(Agriculture, Forestry and Fisheries)
Perlombongan & Kuari 0.8
(Mining and Quarry)
Pembuatan 23.1
(Manufacturing)
Pembinaan 6.6
(Construction)
Elektrik, Gas & Air 0.7
(Electricity, Gas and Water)
Borong & Runcit 17.2
(Wholesale and Retail)
Perdagangan & Komunikasi 4.4
(Commercial and Communications)
Kewangan, Insurans & Perniagaan 2.8
(Finance, Insurance and Business)
Perkhidmatan Sosial & Masyarakat 21.9
(Social Services and Community)
Statistical data also shows that the supply of employment for Selangor is 19,400
employees per annum. The average size of shop-offices in the area is 3,200 sq. ft.

By making your own assumptions (as necessary), advise your client on the prospect
of commercial development in the area.