Why Jakarta office landlords must focus on tenant retention strategies 

Demand is expected to remain modest for the rest of 2024.

The Jakarta office market, characterised by abundant available space, sees tenants prioritising high-quality over floor area. According to Colliers, despite the wide array of options, office demand is expected to remain relatively modest throughout 2024. 

Factors such as the growing number of young professionals, increasing business confidence and a more stable global economy may contribute to a positive outlook for the office market. 

Here’s more from Colliers:

Companies are expected to diversify their business lines as certain sectors show positive performance. Thoughtful strategies are necessary, but post pandemic recovery is likely to open opportunities for business growth. Indonesia's economic outlook and the controlled inflation in Q2 2024 could boost local purchasing power. The post-election period offers the government a chance to implement fiscal policies aimed at fostering robust economic growth, which could signal landlords to prepare for increased space absorption. 

While these external factors are beyond the control of landlords, greater emphasis should be placed on tenant retention strategies. With tenant satisfaction becoming increasingly crucial, landlords should be attentive to tenants' preferences and concerns. Minor upgrades to facilities may be needed to maintain and enhance space appeal. 

With an eye on the future of business, landlords should prioritise sustainability initiatives, given the growing awareness of environmental, social, and governance (ESG) practices among companies.