Rental relevancy of commercial property in flood prone area: case study in Temerloh, Pahang

This research study investigates the factors that influence the tenant’s decision to rent commercial property in flood prone area which is Temerloh, Pahang. The property that affected by flood may has different value, in worn out condition or has lower rental demand unlike the usual property that located in flood free area. However, in some circumstances, the commercial property in flood prone area also occupied by various type of business such as retail, electronics, entertainment also food and beverage that operating day and night just like in other places. From literature research, the factors that the tenant usually look for before renting any property shall be location, rental space and building condition and these factors are applicable for other property in other area. Nevertheless, the factors may be different when the commercial property is situated in flood prone area as the tenant may has opposite opinion. This research study was conducted purposely in Temerloh, a district in Pahang that is known as one of the area that highly to be hit by flood every monsoon season. By using qualitative method which involve interview session with the tenant that rent commercial property around Temerloh, this study manages to identify the main factors that contribute to the rental decision made by the tenant which lead to factors such as location, rental space, rental price, building conditions, business competition, business opportunities and parking availability.