Jakarta retail occupancy rate expected to drop to 73% by year-end

The occupancy rate was at 74.4% in Q3

Retail landlords in Jakarta continue to revitalise foot traffic through various initiatives, such as food festivals, live music events, bazaars, and exclusive discount offerings. Several retailers provided special discounts during the Independence Day holiday celebrations. 

According to a Colliers report, numerous brands have established pop-up shops in prominent locations, offering customers a closer engagement with their latest products. Jakarta’s occupancy rate recorded a modest increase, reaching 74.4% in Q3 2024. However, upcoming mall completions may slightly pressure this rate, with the year-end occupancy rate expected to drop around 73%. 

Here’s more from Colliers:

In Greater Jakarta, the occupancy rate remained flat at 69.2% in Q3 2024, unchanged from the previous quarter. The market growth has been largely driven by food & beverage retailers, some of whom have reconceptualized or relocated to previously occupied spaces. By Q4 2024, the occupancy rate is projected to approach 70%, indicating a gradual recovery as landlords adapt to evolving consumer demands. 

In both Jakarta and Greater Jakarta, middle-upper and premium malls are more successful in managing their tenant mix, as retailers actively seek quality spaces. While new mall completions in 2024 temporarily lowered occupancy rates, the influx of secured tenants is expected to improve these figures. 

In contrast, middle-lower malls may need to better adapt to shifting consumer preferences to remain competitive. As the second half of 2024 progresses, retailers are intensifying their efforts to meet annual revenue targets by employing strategies such as enhanced marketing outreach and operational improvements. For landlords, upgrading mall services and facilities remains essential to maintaining their appeal.