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View all search resultsDemand for retail space in Jakarta shrinks in Q3
From the 2.9 million square meters 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.
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emand 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&B retailers unable to provide dine-in services, not just during the third quarter, but for most of the year since March. Entertainment centers at malls have also been unable to operate,” Taylor said during an online press conference.
The retail industry has been hit hard by the pandemic with more than 100,000 workers facing the risk of being furloughed, according to the Indonesian Shopping Center Tenants Association (Hippindo).
Hippindo attributed these circumstances to Jakarta’s PSBB measures, which were implemented for a second time between Sept. 14 and Oct. 11, after initially being enforced from April to June, as well as weakening consumer purchasing power.
Read also: 100,000 retail workers on brink of furlough as consumption free-falls
