How Jakarta mall owners can attract and retail high-quality tenants

Maintaining harmony between tenants and landlords is essential.

Retail performance in Jakarta has been gradually improving, but most mall owners kept rental rates stable during H1 2024. 

As a result, data from Colliers reveal that the average rent in Jakarta was IDR 564,111, with a service charge of IDR 153,690 as of Q2 2024. In the Greater Jakarta area, the average rent was IDR 387,638 in Q2 2024, marking an almost 3% increase compared to Q2 2023. The service charge remained stable at IDR 122,027. 

Here’s more from Colliers:

The second quarter of 2024 saw minimal fluctuation in the gap between asking and transacted rents in the retail market. This stability indicates a balance between landlord expectations and tenant willingness to pay, reflecting a mature and well-adjusted market.

Investments in amenities and facilities aimed at enhancing the customer experience and profitability have not significantly impacted rental rates. Mall owners are making these upgrades to improve service and attract more visitors, rather than to justify higher rents. Slight increases may occur as landlords regain leverage to raise rents, especially in malls with healthy occupancy rates. 

Landlords need to focus on attracting more tenants and cautiously approach rent increases. Understanding the dynamics of each zone and floor, such as the differences in foot traffic, is crucial for improving performance and developing effective tenancy-mix strategies. Recognizing these variations helps landlords make informed decisions that benefit all parties. Maintaining harmony between tenants and landlords is essential for the mall’s optimal performance. 

In response to the dynamic market environment, mall owners are adapting strategies to attract and retain high-quality tenants. One effective approach is to maintain competitive base rents. By offering attractive lease terms, landlords can entice desirable brands, ensuring a diverse and appealing tenancy mix that draws foot traffic and enhances the overall shopping experience.