Jakarta and Surabaya Retail Markets: Still Dominated by F&B and Fashion

The evolution of the tenancy mix achieved through the subdivision of expansive spaces into specialty stores holds significant potential for future optimization.

Foto: Dok. Freepik.com
Foto: Dok. Freepik.com

RealEstat.id (Jakarta) – Colliers, a diversified professional services and investment management company, observes that leasing activities continue to be dominated by F&B and fashion sectors, featuring notable brands in Jakarta and Surabaya retail market.

“Moreover, a surge in demand from electronic, entertainment retailers, as well as kid-oriented and playground operators is expected in the forthcoming period in Jakarta, while home furnishings, and beauty & healthcare in Surabaya,” Colliers Indonesia Head of Research, Ferry Salanto said.

The evolution of the tenancy mix achieved through the subdivision of expansive spaces into specialty stores holds significant potential for future optimization.

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Even the operation of several anchor tenants and specialty stores has had a noticeable impact on the average occupancy rate in Surabaya.

From the perspective of mall owners, a continuous evolution of shopping malls is imperative, marked by the consistent provision of novel and captivating shopping experiences for patrons.

Mall owners are expected to exhibit discernment in selecting tenants and store concepts that fuel a greater sense of enthusiasm and engagement in shopping experiences. The ability to secure and attract tenants who act as a magnet for shoppers is paramount in this endeavour.

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The optimistic outlook extends to improved foot traffic numbers, stronger retail space demand, and an increase in sales volumes. Consequently, mall owners in Jakarta are bolstered in their conviction when calculating rental costs, leading to an estimated 5% average rent increment per year throughout 2023 - 2025.

While as for retail in Surabaya, the surge in demand and sales is poised to instill confidence in mall owners, leading to a forecast rental growth of 2% – 3% per year from 2023 to 2025.

Redaksi@realestat.id

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