Jakarta CBD’s office occupancy rate rises to 73.7% in Q2

Various sectors drove demand during the quarter.

In Q2 2023, the average occupancy rate in the Jakarta CBD registered at 73.7%, rising by 1.7% compared to Q1 2023, according to Colliers data. Meanwhile, the average occupancy rate tended to be stable at 73% outside the CBD.

“With the lifting of pandemic restrictions, an increasing number of companies are gradually shifting back to work-from-office (WFO) policies. This positive development signals a potential resurgence in demand for office space during the post-pandemic era,” the report said.

Here’s more from Colliers:

As companies that previously downsized their office spaces and adopted hybrid work models consider fully returning their employees to offices, there is a growing need for larger office spaces. 

Recent transactions in Q2 2023 have been notably driven by various sectors, including engineering, consultancy, services, petroleum, home product packaging, healthcare, and energy. The logistics, financial, and technology sectors continue to actively seek office spaces. 

The previous year posed challenges for start-up businesses, with many venture capitalists exercising caution in funding. Consequently, some start-up companies faced financial difficulties. However, certain resilient businesses managed to thrive and receive funding for expansion. For instance, a Singaporean start-up beverage company successfully opened its first office in Indonesia. 

In Q2 2023, the average occupancy rate in the CBD registered at 73.7%, rising by 1.7% compared to Q1 2023. Meanwhile, the average occupancy rate tended to be stable at 73% outside the CBD.

Expectations are high for further potential transactions. However, the large additional supply of office space may exert pressure on the average occupancy rate, at least until the end of 2023. Moreover, as we approach the general election year in 2024, it is customary for business activities to experience a slight slowdown.