Jakarta retail occupancy costs rise gradually in prime malls

Average base rent increased to IDR 572,000 per sqm.

Occupancy costs in Jakarta’s retail market continued a gradual upward trend in Q1 2026, driven primarily by strong-performing malls, according to Colliers.

Colliers reports that average base rent in Jakarta increased modestly to around IDR 572,000 per sq m, reflecting renewed landlord confidence in top-tier retail assets. The consultancy notes that rent growth was largely concentrated in premium and high-performing malls, where occupancy remains high and tenant demand continues to exceed available space.

In these assets, landlords are selectively raising rents, particularly for high-traffic units and prime mall locations. However, in Greater Jakarta, average rents remained stable at around IDR 386,000, as landlords prioritise maintaining occupancy levels over pushing rental increases in a more price-sensitive environment.

Colliers highlights a growing divergence between strong-performing malls and secondary assets, with the latter facing limited rental growth due to lingering vacancy and more cautious tenant demand.

Service charges also edged higher in Jakarta, rising to around IDR 162,000 per sq m in Q1 2026. Premium and middle-upper malls recorded higher averages of about IDR 195,000, reflecting continued investment in building quality, facilities, and tenant experience. In contrast, service charges in Greater Jakarta remained stable at around IDR 132,000, as operators maintained a more cautious stance amid tenant sensitivity to costs.

According to Colliers, the overall increase in occupancy costs underscores a market shift where landlords in well-performing malls are regaining pricing power, while secondary assets must remain competitive to retain tenants.

Despite this, retailers continue to face pressure on sales and margins, prompting a stronger focus on efficiency through smaller store formats, shorter leases, and location optimisation. Colliers concludes that Jakarta’s retail market is becoming increasingly bifurcated, with top-tier malls able to sustain higher occupancy costs, while weaker assets face greater challenges in raising rents and charges.