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Jakarta Post

Demand for retail space in Jakarta shrinks in Q3

  • Mardika Parama

    Jakarta

Jakarta   /   Mon, October 19 2020   /  01:00 am
Not a solution: A family window-shops in late June while wearing masks at a shopping mall in South Jakarta. Shopping malls started reopening in early June under the eased restrictions of the 'new normal' phase, but the number of cases nationwide have jumped significantly, even as Indonesia sees a decline in the number of deaths.(JP/Arief Suhardiman)

Demand for retail space in Jakarta contracted in the third quarter this year, the first time since the first quarter of 2019, as small retailers impacted by the COVID-19 crisis were forced to close their stores, according to property consultant Jones Lang LaSalle (JLL) Indonesia. From the 2.9 million square meters (sqm) in existing retail space in Jakarta, net absorption shrank 13,400 sqm between July and September this year, JLL data show. In comparison, there was 300 sqm in new demand in the second quarter this year. JLL Indonesia head of research James Taylor said on Thursday that the large-scale social restrictions (PSBB) imposed in Jakarta, which had restricted the operations of mall tenants, particularly food and beverage (F&B) retailers, had led to permanent closures of small tenants. “Retailers have been severely restricted in their operations, with F&...