Jakarta’s office leasing sector remains a tenants’ market

Companies wield strong bargaining power.

As of Q3 2024, data from Colliers revealed that the average rents were recorded at IDR226,238 within the CBD area and IDR158,979 outside of the CBD. Some landlords have implemented minimal reductions in their rental rates to attract tenants, hoping to slightly uplift occupancy levels. 

“By offering more competitive pricing, these landlords aim to fill vacant spaces and stabilise their income streams. This strategy also aligns with long-term goals of retaining quality tenants and maintaining steady cash flows,” the report said.

Here’s more from Colliers:

Companies searching for new office space continue to wield strong bargaining power amid the ongoing recovery of the office market. The availability of high-quality spaces, slow absorption rates, and limited upcoming completions in the near term add further pressure on competitiveness. 

In response, the substantial gap between asking rents and transacted rents may narrow in the future. Simply offering competitive rental rates may no longer suffice; landlords are expected to be more proactive in marketing their properties and emphasising unique features beyond pricing alone. Enhancing modern amenities and improving service quality are among the strategies landlords can leverage to attract tenants. 

The prestigious CBD in Jakarta continues to be a prime destination for multinational companies seeking office space. The average rental rate for premium office buildings was recorded at IDR299,217, while Grade A offices documented a rate of IDR236,432 as of Q3 2024. In contrast, Grade A offices outside the CBD offered a relatively lower average rent of IDR171,160.