Jakarta Retail Market Report - Colliers International

Demand
existing retail performance
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90%
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jakarta
2007 2008 2009 2010 2011 1Q 2012 2Q 2012
as of 2Q 2012, the occupancy rates of retail
centres for lease in jakarta improved moderately
to 89.5% Q-o-Q. thanks to middle-class retail
centres like tebet Green, Pasaraya Blok M,
Plaza Semanggi, kalibata City, POINS and f’X
Lifestyle x’nter which maintained the overall
performance.
Occupancy rates for middle- to upper-class
malls achieved an average of 93.3% in 2Q 2012
up mildly compared to the previous quarter.
kuningan City, a new mall which has been
operating since last year, has a good occupancy
rate together with other middle- to upper-class
malls.
On the other hand, middle- to low-class malls
showed a moderate decline in occupancy
during the quarter. In 2Q 2012, the average
occupancy rate of this class was 85%. the high
competition among the electronics and gadget
retailers located in Mangga Dua. Has created
rivalry among stores which caused some
tenants (fashion and accessories) to pull out.
this was also seen in a mall located in the Blok
M area of South jakarta. all in all, it is not
always market competition which causes some
retailers to terminate their business which
decrease the occupancy level of a mall. Some
landlords are now quite selective in sorting out
their existing tenants (low performing tenants
are replaced). Other than that, some renovation
work at a mall may also affect the overall
occupancy.
the food and beverage (F&B) businesses are
some of the most active retailers which help
maintain the level of occupancy. the industry
has grown faster in the second quarter after
slowing in the prior quarter. they are likely
jakarta | 2q 2012 | retail
jakarta BoDetaBek
Colliers International Indonesia - research
speeding up expansion in anticipation of the
Islamic holiday, Idul Fitri, when people usually
spend more for both F&B and fashion. Plaza
Semanggi, kalibata City Square, tebet Green,
f’X Lifestyle x’nter, Plaza e’X, kuningan City,
Central Park and Plaza Festival are malls with
F&B domination which opened in 2Q 2012. For
example, roppan and kenny rogers restaurant,
which are located in the main entrance of Plaza
Semanggi, have been open since May 2012.
Likewise, the Coffee Bean & tea Leaf opened
at tebet Green and Central Park Mall. the
largest F&B invasion was at Plaza Festival
(now known as Passer koeningan), a mall that
combines sport, entertainment and culinary
concepts which welcomed Betawi tempo
Doeloe as an anchor tenant during 2Q 2012
with 2,200 sq m of space.
Fashion retailers of shoes, bags and accessories
are the second most active. Some brands are
quite active this quarter including Color Box,
atmosphere, Gallop, armani jeans, Hugo Boss,
the Little things She Needs, Crocs, rococo,
Barbara Shoes, Class room and Furla.
In addition to F&B and fashion, other retailers
like home equipment, gadgets and electronics,
entertainment, beauty, health and personal care
were active tenants in 2Q 2012. In the home
equipment category, three retailers have taken
large spaces between 1,000 and 7,000 sq m at
malls located in South jakarta. ace Hardware
and Informa, two retailers in the kawan Lama
Sejahtera group of companies, opened at tebet
Green and Pasaraya Blok M while Home
Solution will open at Plaza Semanggi. During
2Q 2012, ace Hardware has been operating
while Informa and Home Solution are doing fitout
work.
colliers international | p. 5