Jakarta Grade A office vacancy rate to decline to 34% by year-end

There are no new completions expected in the near term.

By end-2025, JLL said in a report that the vacancy rate for Grade A offices in Jakarta CBD is forecast to decline slightly to approximately 34%, driven by a combination of no expected new completions and gradual improvements in demand.

Additionally, cost-efficiency strategies will likely drive the continued trend of flight-to-quality with relocation and rightsizing throughout 2025.

Here’s more from JLL:

In Q2 2025, Grade A office space sustained its growth trend with net demand totalling approximately 14,600 sqm. A significant portion of this demand—around 5,000 sqm—came from a technology company expanding its footprint in the CBD area.

The technology sector accounted for the largest portion of office space demand by size, followed by the mining and financial sectors. During the quarter, flexible space operators showed no activity.

No new buildings are completed in Q2 2025

No new Grade A office space will enter the market during 2025. Historically, the market has seen additions totalling approximately 347,000 sqm of Grade A space since 2021.

The Grade A occupancy rate was 65% in Q2 2025, up slightly by 0.4 ppts from the previous quarter. As the market gradually absorbs existing supply, landlords with more vacancies are showing some flexibility in their tenant acquisition strategies.

Grade A rents edge up by around 0.5% compared to the previous quarter

The quarter saw Grade A rents continue their upward momentum with a 0.5% q-o-q increase, while the cumulative growth for 2025 has reached approximately 1.3%. These results support the positive rent forecast for the year.

Some landlords with relatively high occupancy rates have begun to adjust their rents slightly upward from recent levels. Meanwhile, landlords with higher vacancy rates are maintaining competitive pricing to attract new tenants.