Kota Kinabalu’s retail scene has always been a mix of bustling hotspots and quiet corners. But as we move deeper into 2025, one trend is hard to ignore—certain malls in the city are struggling to fill their shoplots, leaving entire sections eerily empty. What’s going on? Is it the economy? Changing shopping habits? Or something else entirely?
Let’s take a closer look at why some commercial spaces in Kota Kinabalu’s malls remain unoccupied, despite the city’s growing population and tourism revival.
The Ghost Mall Phenomenon
Walk through some of Kota Kinabalu's less crowded shopping centres, and you’ll notice a pattern—rows of shuttered shoplots, "For Rent" signs gathering dust, and only a handful of loyal tenants keeping the lights on. Malls that were once promising hubs now feel like half-empty shells.
So, why aren’t businesses snapping up these spaces?
1. Oversupply of Commercial Space
Kota Kinabalu has seen a boom in commercial property development over the past decade. New malls and business complexes keep popping up, but the number of businesses looking to set up shop hasn’t kept pace. With so many options, tenants are pickier—opting for high-traffic locations like Suria Sabah or Imago while smaller or less strategically placed malls get left behind.
2. High Rental Costs vs. Low Foot Traffic
Some mall owners are still charging pre-pandemic rental rates, despite foot traffic not fully recovering in certain areas. Small and medium businesses (SMEs), already cautious after years of economic uncertainty, can’t justify the expense if customers aren’t walking in.
“Why pay premium rent for a space where only a few people pass by daily?” says Khairul, a local F&B entrepreneur who chose a street-side lot over a mall unit. “At least with a shop outside, I don’t have to rely solely on mall visitors.”
3. The Rise of Online Shopping & Home Businesses
Let’s face it—online shopping isn’t slowing down. With platforms like Shopee, Lazada, and Instagram stores dominating, many entrepreneurs no longer see physical shoplots as a must. Why pay for overhead costs when you can sell directly to customers from home?
Even food businesses are adapting, with cloud kitchens and delivery-only concepts reducing the need for expensive mall spaces.
4. Changing Consumer Preferences
Kota Kinabalu folks love their malls, but they’re becoming more selective. Shoppers today prefer destinations that offer experiences—good food, entertainment, and Instagrammable spots. Older malls that haven’t kept up with renovations or modern tenant mixes simply can’t compete.
“If a mall feels outdated and doesn’t have good dining options, why would I go?” says Sara, a 28-year-old frequent shopper. “I’d rather visit places with a better atmosphere.”
5. Location, Location, Location
Some struggling malls suffer from poor accessibility—either too far from residential areas, lacking parking, or simply not on the average shopper’s radar. Without convenience, even attractive rental discounts might not be enough to lure tenants.
What Can Be Done?
Is there hope for these vacant shoplots? Some potential solutions include:
Lowering Rent or Offering Incentives – Mall owners might need to adjust rates or provide perks like rent-free periods to attract tenants.
Repurposing Spaces – Empty lots could become co-working spaces, event venues, or pop-up market zones to draw crowds.
Revamping the Tenant Mix – Bringing in more experiential tenants (arcades, themed cafes, fitness studios) could revive interest.
Better Marketing & Events – Regular bazaars, live performances, or community events could drive foot traffic back.
The Bottom Line
While Kota Kinabalu’s retail scene is far from dead, the imbalance between supply and demand is leaving some malls in a tough spot. For these spaces to thrive again, both property owners and businesses will need to adapt to the new normal—where convenience, affordability, and experience matter more than ever.