Jakarta CBD office occupancy inches up to 74.5% in Q1

Multinational companies remain attracted to the CBD area.

Uncertain economic conditions may affect businesses’ interest in opening offices in Jakarta. Additionally, Colliers noted in a report that certain sectors are observed to focus more on business efficiency and adjusting workforce needs.

As a result, many businesses are in a continuous process of adjustment, which is expected to delay office branch expansion plans. Additionally, ongoing progress of the global market is likely to contribute to flattening absorption growth.

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Nevertheless, Jakarta is expected to remain an ideal hub for businesses looking to expand their operations. Having a local office is still considered crucial to support business activities, especially for companies aiming to strengthen their presence in the area. As time passes and businesses reach their targeted milestones, interest in securing more office space is likely to rebound. Among multinational companies, Jakarta, as one of Indonesia's large markets, continues to fuel their motivation to explore the possibility of opening office branches.

The situation mentioned above had a slight impact on occupancy in Jakarta during Q1 2025. In the CBD, occupancy was registered at 74.5%, showing a slight but notable increase from Q4 2024. This growth reflects a positive shift compared to the same period in 2024. The CBD area remains attractive for multinational companies eyeing premium addresses for their business presence. Meanwhile, outside the CBD, occupancy currently stands at 72.1%, experiencing a slight increase from Q4 2024.

Looking ahead, demand for office space is expected to improve for the rest of 2025, despite staying moderate. Logistics, insurance, agribusiness, and mining continue to show strong interest in leasing office spaces. Tenant relocations remain evident, with businesses attentive to newer, high-quality office buildings, especially from international companies.

For the rest of 2025, space absorption is expected to improve, with average occupancy in the CBD forecasted to reach around 75%, and 70% outside the CBD. This growth is considered a recovery, particularly when compared to the downward trend during the pandemic. While international companies may still be eyeing expansion, some of their plans to invest in office space are likely to be on hold until clearer positive signals emerge.

The appeal of working in Grade A buildings outside the CBD is expected to grow, as these spaces cater to the need for modern, flexible work environments. Additionally, smaller and compact units with adaptable layouts are becoming increasingly sought after. In general, companies are prioritizing spaces that align with their evolving business needs.

Grade A buildings in the CBD recorded occupancy at approximately 77%, while buildings outside the CBD exhibit lower performance, at nearly 70%. Meanwhile, premium buildings, which are only located in the CBD, maintain an occupancy approximately 2% below Grade A buildings in the CBD. This is likely due to Grade A buildings having relatively lower rental rates compared to premium buildings, making them the preferred choice for cost-conscious tenants looking to occupy a significant amount of space.