According to Knight Frank's Asia-Pacific Prime Office Rental Index for 2Q2018, Kuala Lumpur's office rental market has recorded the steepest decline in the Asia Pacific region in 2Q2018 and the index showed that, over the quarter, KL's office rent had declined 0.8%.

"With more supply due to come online over the next 12 months, rental growth could be limited. Supply concerns in Kuala Lumpur pushed rents down another 0.8% quarter-on-quarter," Knight Frank Malaysia's Corporate Services executive director Teh Young Khean said.

The office market outlook for both KL and Selangor remains lacklustre as impending supply coupled with tight leasing market continues to put pressure on occupancy and rental levels, he added.

"Landlords with older and newly completed buildings, especially in KL City, are more accommodating in providing additional incentives to retain existing tenants as well as to attract potential tenants," Teh said in a statement released with the index.

With regards to the overall office rental market in Asia-Pacific, steady demand can be seen in the prime office market and this is expected to bolster rental growth for the second half of the year, Knight Frank Asia-Pacific's head of research Nicholas Holt said.

"Despite several headwinds, including tensions around trade, regional economic growth continues to fuel demand for Grade-A office space," Holt reckoned.