Jakarta office vacancy rates to improve to 32% by year-end

Rents are also expected to continue improving.

Jakarta's office market continued its recovery in the first quarter of 2026, recording positive net demand of about 18,000 sq m, according to JLL. Technology, professional services and financial services companies remained the main drivers of leasing activity, while one flexible workspace operator expanded within a Grade A office building in the Sudirman area.

No new office buildings were completed during the quarter, and JLL said no additional office supply is expected throughout 2026. The consultancy noted that joint operating arrangements between landlords and occupiers have become an increasingly common expansion strategy in recent years.

Grade A occupancy increased by 0.5 percentage points quarter-on-quarter to 67% as the market gradually absorbed existing space. Landlords with higher vacancy levels continued to show flexibility in tenant acquisition efforts.

Grade A office rents rose 0.95% quarter-on-quarter, extending the rental recovery seen in recent periods. JLL said the limited supply pipeline is expected to continue supporting market fundamentals and rental growth through 2026.

Looking ahead, no new office supply is expected over the next two years. JLL forecasts office vacancy rates will improve to 32% by year-end 2026, while technology and financial services firms are expected to remain the primary sources of demand. The consultancy added that rental growth, initially led by premium buildings, is likely to broaden across the wider Grade A market as occupier demand strengthens.