More smaller space inquiries, but overall performance has yet to lift
The Work from Home (WFH) strategy has resulted in more flexibility in working habits, both in terms of location and working hours. This has led to efficiency measures, with companies adjusting working arrangements for employees and maximizing the usage of space. Landlords need to anticipate such efficiency trends leading to fewer space inquiries, especially from new businesses beginning to explore opportunities in Surabaya, or from existing tenants requiring agile spaces as alternatives to paying higher occupancy costs and longer lease periods for larger spaces.
The current circumstances are more favourable to tenants, and landlords should continue to adopt flexibility in terms of rental negotiations and lease-term periods to attract more tenants.