Office
Leasing activities are expected to gradually improve, with several leasing and sales transactions registered. However, a spate of additional supply has seen the occupancy rate fall to its lowest level in history.
To survive in an increasingly competitive environment, strategies may have to be applied to secure potential tenants, whether they be investors or end-users. Flexibility in the shape and size of office space needs to be adopted by landlords to meet demand that will likely be dominated by smaller space requirements.
Apartment
In the middle of this semester, the government relaxed some regulations related to the residential sector. At the same time, many developers have been removing their promotional programmes. As a result, the apartment market in Surabaya remains sluggish, as consumers cannot see the benefit of the government’s measures.
We hope that those developers reconsider their current sales strategy. It is much better if developers can cooperate with the government in providing some incentives to consumers to boost their sales and create a rebound in the market. If this current situation continues, we predict a continuation of the current gloomy situation.
Retail
As restrictions begin to loosen, the public now has more enthusiasm to return to shopping malls. Health protocols have been implemented by landlords to ensure the safety of shoppers. However, retail business has not yet fully returned to normal due to mall capacity and operating hour restrictions.
Landlords need to be more flexible in leasing terms to pursue committed tenants, such as providing options for profit-sharing for tenants who have experienced difficult times, new strategies on rents by offering friendly installments for down payment, and short-term or trial rental periods by freeing fitting-out fees that need to be applied. From the tenant side, providing online platforms is expected to continue to generate sales.
Hotel
The trend is in the positive direction. Many business activities have started to be carried out in hotels, although with the concept of adjusting to existing health protocols. The “staycation” is one of the trends that is starting to increase, especially for some people who still want to explore outside the city. The vaccination process that has been intensively implemented by the government is expected to have a positive impact, one of which is for the hotel industry.
