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Warehousing drives property demand in Jakarta: JLL
With little change in a weak office space segment, modern warehouses, industrial properties and residential plots were the most sought-after real estate assets in the third quarter.
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Stacks of expired food products are seen at a warehouse of PT Pandawa Rezeki Semesta in West Jakarta on March 21, 2018. (kompas.com/Rima Wahyuningrum)
W
ith little change in the office space segment, modern warehouses, industrial properties and residential plots were the most sought-after real estate assets in Jakarta in the third quarter, a new report shows.
The occupancy rates for office and shopping center space, as well as for modern warehouses, were relatively stable in the July-September period, according to JLL Indonesia.
While modern logistics warehouses, industrial properties and residential plots saw rising demand, the office space continues to be impacted by ongoing cost-cutting efforts.
Corporations were still seeking suitable formulas for themselves to estimate their office space demand, Angela Wibawa, head of office leasing advisory at JLL, said in a media briefing accompanying the publication of the quarterly report.
That is in line with a market assessment published by property firm Colliers in June that found businesses in Jakarta were seeking to reduce their office size, leading to rising demand for smaller office spaces.
The JLL report finds that businesses remain keen on cutting costs by optimizing office space based on their number of employees.
Banks, pharmaceuticals, foreign exchange brokers, textile and logistics businesses, social media and mining companies are among the companies looking to make the move toward smaller office spaces, Colliers reported in late June.
