We expect a correction in Jakarta’s rents in 2019, as some upcoming office buildings begin to reduce their base rents to encourage occupancy. We recommend building owners be meticulous in managing incentives and rental discounts to have the best opportunity to secure tenants.
The agility spaces model will likely become a win-win solution for both landlords and tenants as it provides flexibility. With this model, landlords are changing the previous model of offering their entire building for lease and instead only allocate about 60% of the space for direct leasing to end-users, while allowing the remainder to be managed by flexible workspace operators, or by the landlords themselves.
