Record logistics warehouse supply expected in Greater Jakarta in 2027

Modern logistics stock is projected to exceed 4 million sqm by 2028.

Greater Jakarta's modern logistics warehouse market maintained stable performance during the first quarter of 2026, with limited available space continuing to support occupancy and rental growth, according to JLL.

The market's total modern logistics stock increased to 3.2 million sqm following the completion of two projects totalling 29,540 sqm, both located in the eastern corridor.

Despite steady leasing activity, vacancy increased slightly to 4.2% from 3.6% at the end of 2025 as tenant departures offset new commitments, resulting in limited net absorption.

JLL said constrained availability continues to be a defining feature of the market, helping maintain healthy single-digit vacancy levels despite ongoing occupier demand.

Rental growth remained positive during the quarter, with base rents increasing 3.96% quarter-on-quarter and 4.88% year-on-year. Several landlords raised asking rents in response to tightening market conditions and a lack of available quality space.

According to JLL, the completion of new high-specification logistics facilities has established higher rental benchmarks across key submarkets, enabling competing landlords with comparable assets to increase pricing.

The consultancy also noted continued investor interest in the sector, supported by capital inflows through share sales, fund injections and strategic asset acquisitions.

Looking ahead, JLL expects the eastern corridor to remain the preferred location for both occupiers and investors. Modern logistics stock is projected to exceed 4 million sqm by 2028, while vacancy is forecast to remain at a healthy single-digit level. A record year for supply is anticipated in 2027 as major developers advance phased projects across their land banks.