South Jakarta leads outside-CBD office demand as occupancy nears 70%

TB Simatupang was a key outperformer.

Jakarta’s outside-CBD office market recorded average occupancy of nearly 70% in Q1 2026, with South Jakarta continuing to lead activity as tenants seek well-located offices at more competitive rents, according to Colliers.

In its latest market update, Colliers highlighted TB Simatupang as a key outperformer, with occupancy at around 76%, supported by sustained demand from occupiers prioritising accessibility, established infrastructure and cost efficiency outside the CBD.

Grade A offices in the outside-CBD segment recorded average occupancy of about 67%, with vacancy largely concentrated in older or less well-connected assets. Newer developments closer to major transport links or CBD-adjacent locations continued to attract stronger interest, as tenants increasingly target better-quality space at more competitive pricing.

Colliers noted that landlords are responding with more flexible leasing packages, including adjusted rents and tenant-friendly terms, to remain competitive against CBD offerings. This has supported ongoing tenant movement into upgraded or better-located assets.

At the same time, occupiers are leveraging market conditions to upgrade office quality, with a clear preference for buildings offering both strong specifications and convenient access to central Jakarta.

Looking ahead, Colliers expects gradual improvement in the outside-CBD market through 2026, supported by limited new supply and steady demand from key business sectors. Well-connected buildings in established business districts such as South Jakarta are expected to remain the primary beneficiaries of ongoing leasing activity.