The already saturated office market since last year are now exacerbated Covid-19 pandemic. When this report is prepared, Surabaya became the epicenter with the highest record of confirmed cases and deaths. This does not help the overall slowdown in office absorption. Supply projection surpasses the real need for office space. This also push asking rent to stay with no anticipative increase over the next semester.
We think there should be no additional project beyond our list of supply pipeline at least to maintain hope by focusing on creating new demand which possibly coming from local small to medium enterprise, start-up companies or even big corporations that plan to expand in Surabaya. Developers’ focus should be on catching up a safe occupancy level and become more accommodative particularly to a big corporation.