Padel and pickleball boom drives repurposing of warehouses, malls in Malaysia
Growing demand for padel and pickleball courts is reshaping Malaysia’s property landscape, with operators converting warehouses, open land and shopping malls into sport venues. Location, ceiling height, cost and supporting facilities are key considerations, while rental rates vary from RM2 psf for w
The rapid growth of padel and pickleball in Malaysia is driving a wave of property conversions, with operators adapting warehouses, open land and shopping malls to meet demand for courts. Operators such as PadelKu, which manages several locations across the country, illustrate the variety of spaces being used: its outlet at Berjaya Times Square in Kuala Lumpur occupies more than 10,000 sq ft, its Megah location in Petaling Jaya (PJ), Selangor spans more than 26,000 sq ft, and its Heritage Courts in Penang covers more than 40,000 sq ft.
PadelKu founder and head of marketing Michelle Beh said that when the operator first entered the market in 2023, identifying a suitable location was considerably more difficult. The operator was only the second padel club formed in Malaysia, at a time when awareness of both sports was limited. A padel facility typically requires a minimum ceiling height of about nine metres and a sizable floor area to house multiple courts, each measuring 20m by 10m. Conventional retail spaces are not necessarily straightforward options, while warehouses fit the bill better because of their size.
However, PadelKu wanted an initial location that was easy to reach and close to its anticipated customer base of mid- to high-income users, making the search more challenging because warehouses tended to be further away from populated districts. The situation has since changed, and the operator is now approached by property owners and agents offering spaces, including shopping malls, warehouses and other commercial properties. For its second location, PadelKu ultimately settled on an open piece of land in C Park, Taman SEA, in the middle of PJ, where it opted to build its own roof and concrete floor.
Beh said the decision essentially involved choosing between higher or lower rent, or more capital expenditure upfront. Warehouses may ask for around RM2 psf or more, while an empty plot could cost about half that amount, though the figures can differ substantially across locations. According to padel club start-up site PadelBlueprint.com, constructing a single basic court can range between RM56,000 and RM70,000, with indoor courts adding 20 per cent to 40 per cent to the overall cost. Venues with existing slabs, such as warehouses, can cut costs by RM12,000 to RM20,000. Pickleball courts are generally more expensive to build, estimated from RM130,000 and above per court, because they require a cushioned acrylic or post-tensioned concrete surface for tournament standards.
JPC Padel general manager Eisha Izaddeen noted that sport facilities operate as destination businesses, with users typically booking a court in advance. Visibility or passing pedestrian traffic is not necessarily a crucial consideration; instead, accessibility and parking weigh more. Eisha said the increase in sport centres across the Klang Valley is generally positive because it can activate industrial and commercial stock that have been sitting idle, but cautioned that an available warehouse, rooftop or another space does not automatically create demand. She highlighted the need to confirm change-of-use approvals before signing a lease, and to ensure the lease is sufficiently long to allow the operator to amortise the cost of fitting out the facility. Physical infrastructure including clear height, floor loading and power capacity should also be examined at an early stage.
As PadelKu demonstrates, there is no single formula for these venues. Its locations range from a centralised Kuala Lumpur address and a large open land site in PJ to a massive shared sport hub in Penang, with each venue applying a different configuration to meet the demand of the surrounding community. For property owners of underused commercial and industrial spaces, the trend presents a new potential way to incorporate lifestyle elements into their sites, but demand remains the deciding factor in successful repurposing.
