Quality-led office relocations drive Jakarta leasing recovery

CBD occupancy rose to 82% in Q2.

Corporate relocations into higher-quality office buildings are driving Jakarta's office market recovery, with occupiers increasingly prioritising operational efficiency, accessibility and sustainability over rental cost, according to Colliers.

Colliers said average CBD occupancy rose to around 76% in Q2 2026, while occupancy outside the CBD remained close to 70%. The agency expects CBD occupancy to reach about 77% by the end of 2026 and between 80% and 81% by 2029 as limited future supply gradually improves market balance.

Premium CBD offices continued to lead the market with occupancy of around 83%, supported by relocations into higher-quality buildings. Grade A CBD offices reached approximately 77%, while Grade A assets outside the CBD remained lower at around 68%.

Colliers said Sudirman recorded the highest occupancy among CBD submarkets at around 78%, while Mega Kuningan remained the weakest at approximately 60%. Thamrin strengthened during the first half of 2026, supported by MRT access and leasing demand from energy, logistics and technology companies. Outside the CBD, TB Simatupang remained relatively resilient with occupancy of around 76%.

Despite improving demand, Colliers noted Jakarta still has significant vacant space, including around 1.76 million sqm in the CBD and 1.2 million sqm outside the CBD. Premium buildings account for less than 10% of CBD vacancies, while Grade A buildings represent nearly half, reflecting substantial new supply delivered in recent years.

Colliers said leasing activity continues to be driven mainly by relocations rather than major market expansion. New foreign entrants remain active but generally require smaller offices of between 100 sqm and 500 sqm.

According to Colliers, future market recovery is expected to favour buildings offering fitted office space, strong public transport access and green building certification, signalling an increasingly quality-driven rather than price-driven office market.