What will drive Jakarta’s retail rental growth until 2026?

Landlords must maintain profitability and tenant satisfaction.

Maintaining a consistent and satisfactory occupancy rate is likely to drive potential rental growth in Jakarta’s retail sector between 2024 and 2026, according to a recent release from Colliers. Landlords may make minimal rental rate adjustments to remain competitive, positioning themselves to attract tenants and boost occupancy in the evolving market. 

Ferry Salanto, Head of Research at Colliers, mentioned that “While the reasons for rental rate increases vary among landlords, the overarching drivers include the need for capital improvements and a surge in inquiries from prospective tenants in high-performing malls.” 

Ferry added, “to maintain profitability and tenant satisfaction, landlords should carefully balance these factors, opting for moderate rate adjustments to retain key tenants while preserving a competitive edge.” 

For retailers, adapting to potential occupancy cost adjustments requires well-calculated strategies. Brands are expected to engage in meticulous planning, projecting sales and revenues for each specific outlet to ensure financial stability. 

This involves analyzing consumer behavior patterns and aligning inventory with marketing efforts accordingly. By taking these proactive measures, retailers can maintain their current operations while securing a favorable position for future lease renewals.

A forward-thinking approach is essential for navigating the complexities of the retail landscape and achieving long-term success in an ever-evolving market.

Download the Colliers Property Market Quarterly Report Q3 2024, Jakarta Retail Sector, here.