Commercial, industrial properties attract new investors as padel, pickleball boom

KUALA LUMPUR, 22 SEPTEMBER 2026 —

Padel and pickleball operators are converting warehouses, open land and shopping mall spaces into commercial venues as the two racket sports gain traction across Malaysia, according to EdgeProp.

The shift is creating new demand for underutilised commercial and industrial properties, particularly in Kuala Lumpur and Selangor, where operators are adapting sites to meet specific spatial and structural requirements.

Michelle Beh, founder and head of marketing at PadelKu, said the operator was among the first to establish padel clubs in the country. She noted that securing a suitable site in 2023 was difficult because property owners and agents lacked understanding of the sport’s spatial needs. Padel facilities typically require a minimum ceiling height of nine metres and floor areas sufficient for courts measuring 20 metres by 10 metres.

These specifications often excluded conventional retail spaces, pushing operators toward warehouses or open plots. Beh explained that PadelKu’s first location at Berjaya Times Square in Kuala Lumpur was an exception, occupying more than 10,000 square feet within a shopping complex. The site included a simple cafe, but the operator had to negotiate specific terms to accommodate the height requirements within a multi-tenanted environment.

For its second location in Petaling Jaya, PadelKu evaluated several warehouses before settling on an open piece of land in C Park, Taman SEA. The operator opted to construct its own roof and concrete floor on the vacant plot. Beh described the decision as a trade-off between higher rent on ready buildings and higher upfront capital expenditure on raw land.

Rental rates for warehouses in the area can start around RM2 per square foot, whereas an empty plot may cost approximately half that amount, according to Beh. The operator calculated that the lower rental rate on the open land offset the initial construction costs over time. This approach allows for a larger footprint, with the Megah location spanning more than 26,000 square feet.

Cost structures for building courts vary significantly by type and location. PadelBlueprint.com, a start-up site for padel club planning, estimates that constructing a single basic court costs between RM56,000 and RM70,000. Indoor courts, which are preferred in Malaysia’s tropical climate, add 20% to 40% to the overall cost.

Using existing concrete slabs in warehouses can reduce costs by RM12,000 to RM20,000, depending on the state and floor quality. Pickleball courts are more expensive to build, with estimates starting from RM130,000 per court. The higher cost is driven by the need for cushioned acrylic or post-tensioned concrete surfaces to meet tournament standards, which are pricier than the artificial turf used for padel.

The trend is extending to other states, with PadelKu’s Heritage Courts in Penang covering more than 40,000 square feet. This outlet shares space with pickleball courts operated by Dinkyard and a separate restaurant. The configuration illustrates how operators are integrating multiple sporting disciplines and amenities into single commercial properties to maximise utility and dwell time.

Beh noted that property owners are now proactively offering spaces to sport operators, a reversal from the early days when the operator had to seek out suitable sites. Vacant commercial spaces that were previously deemed unsuitable for retail can now be repurposed for sports, provided they meet structural criteria. This development offers a new revenue stream for asset owners of industrial and commercial properties in high-growth corridors.

The economics of mall locations differ from warehouses or open land. While rental rates are often higher, malls provide essential facilities such as air-conditioning, toilets and food outlets, reducing the operator’s capital expenditure on amenities. At Berjaya Times Square, PadelKu leverages the mall’s existing infrastructure rather than building separate facilities.

Operators are increasingly designing venues as lifestyle hubs rather than just sporting facilities. PadelKu positions food and beverage as a complementary amenity, focusing primarily on in-house coaching and social games. The mix of facilities allows venues to capture extended dwell time, creating an environment that appeals to the mid- to high-income segment identified by the operator.

The growth of padel and pickleball is reshaping how commercial property is valued in urban centres. Spaces with adequate ceiling heights and large floor areas are gaining new relevance as operators seek locations that balance accessibility, cost and structural suitability. This trend is particularly pronounced in Kuala Lumpur and Selangor, where the concentration of potential customers drives demand for convenient, high-quality venues.

Beh said the market has evolved from a period of limited awareness to one where property agents actively market suitable spaces to sport operators. The shift indicates that the sport has moved from a niche activity to a mainstream lifestyle pursuit, influencing property development and conversion strategies across the region.

The varying cost structures and location preferences highlight the importance of site-specific analysis for investors and operators. Whether converting a warehouse or developing an open plot, the financial model depends on balancing rental rates, construction costs and the potential for ancillary revenue from amenities. The continued expansion of these sports suggests sustained demand for adaptable commercial spaces in key Malaysian cities.