Jakarta office rentals expected to increase<\/p>\n
JAKARTA (JP): Jakarta office rentals have begun to increase
\nwith A-grade prime rental space averaging US$15 a square meter a
\nmonth for tenants occupying units of less than 500 square meters.<\/p>\n
Property consultant First Pacific Davies says in its latest
\nquarterly market review that rents as high as $19 a square meter
\nhave been achieved for new grade A premises.<\/p>\n
Supply will reach about 260,000 square meters this year and
\nrents will rise moderately, particularly in the second half of
\nthe year, the report says.<\/p>\n
Average rents for A-grade offices in Jakarta will increase to
\nbetween US$14 a square meter and $16 a square meter, the report
\nsays.<\/p>\n
Rents for larger precommitments will remain between $12 a
\nsquare meter and $14 a square meter.<\/p>\n
Rents for B-grade and decentralized office space will be
\nsteady at between $10 a square meter and $13 a square meter.<\/p>\n
Service charges will remain between $5 a square meter and $7 a
\nsquare meter, the report says.<\/p>\n
More and more developers are seeking to split the electricity
\nfor leased premises and charge separately to more accurately
\nreflect the true cost of operating buildings.<\/p>\n
"This has met with favorable response from tenants," the
\nreport says.<\/p>\n
The Jakarta office market will be steady throughout 1995 and
\n1996, the company says.<\/p>\n
If election activity remains subdued A-grade office space
\nprices will take off in 1997.<\/p>\n
Demand for A-grade office space reached record levels last
\nyear with 265,000 square meters taken up.<\/p>\n
This previous record was in 1995 when 250,000 square meters
\nwere taken up.<\/p>\n
Economic deregulation will ensure investment keeps rising and
\nfuels demand for office space, the report says.<\/p>\n
The company said new office space last year reached 420,000
\nsquare meters, up from 350,000 square meters in 1995.<\/p>\n
Major projects handed over at the end of last year included
\nWisma 46, Kota BNI on Jl. Sudirman (88,000 square meters), Wisma
\nBank Danamon & Wisma Danamon Aetna Life on Jl. Sudirman (90,000
\nsquare meters), and Menara Batavia on Jl. Mas Mansyur (45,000
\nsquare meters).<\/p>\n
At the end of last year, Grade A office space in Jakarta's
\nCentral Business District stood at 2.6 million square meters.<\/p>\n
Major projects this year include Plaza BII on Jl. Thamrin
\n(58,000 square meters), Bursa Efek II on Jl. Sudirman (64,000
\nsquare meter), Sentral Senayan I on Jl. Asia Afrika (32,000
\nsquare meters) and Deutsche Bank on Jl. Imam Bonjol (20,000
\nsquare meters). (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-office-rentals-expected-to-increase-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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