Office occupancy rate seen to drop next year<\/p>\n
JAKARTA (JP): Office occupancy rates will fall four percentage
\npoints to 86 percent of total office space available by the end
\nof next year because of new supply, a property analyst predicted
\nyesterday.<\/p>\n
"With approximately 600,000 square meters of new office space
\nentering the market next year, occupancy rates are anticipated to
\ndecrease from 90 percent to 86 percent," said Peter A. Collins,
\nthe president of property consultant PT Colliers Jardine
\nIndonesia.<\/p>\n
He said office stock next year would grow to more than three
\nmillion square meters, including more than 2.6 million square
\nmeters in premium and class A buildings in prime areas.<\/p>\n
Next year's office take-up rate is expected to be about
\n300,000 square meters, taken mostly by banking, trading and
\nservice companies, he said.<\/p>\n
Jakarta's take-up rate for office space is estimated to reach
\n300,000 square meters this year, the highest level achieved in
\nthe 1990s, he said.<\/p>\n
"Despite the high takeup, the vacancy rate is expected to
\nincrease to about 14 percent by the end of 1997. But what we are
\nexperiencing here is a healthy vacancy rate as a result of large
\nsupply of office space responding to a demand driven market,"
\nCollins said.<\/p>\n
The property market is very much demand driven. Healthy
\ndemand, particularly for good quality offices, has encouraged an
\noffice building boom this year, he said.<\/p>\n
Projection<\/p>\n
New office supply in 1998 is projected to increase by about
\n720,000 square meters. The development status for 25 percent of
\nthis supply is "probable" (planning and approval processes are in
\nprogress and financial approvals are being actively sought) and
\n4.4 percent is "possible" (site design concept drawings have been
\ncompleted or are in progress, and finance is under discussion),
\nhe said.<\/p>\n
The Colliers Jardine Commercial Leasing Department has
\nobserved an increasing trend of service companies relocating
\ntheir businesses from prime areas -- around Jl. Thamrin, Jl.
\nSudirman, Jl. Gatot Subroto and Kuningan -- to periphery
\nlocations, such as Kebayoran, Pancoran and Jl. T.B. Simatupang.<\/p>\n
"This new phenomenon is a result of heavy traffic and
\nincreased traveling time coupled with increasing choices of
\noffice space in the periphery areas," Collins said.<\/p>\n
He said the future office tenants in prime Jakarta areas would
\ntend to be in financial, banking and services sectors.<\/p>\n
Colliers Jardine's data shows that net rents for new prime
\nbuildings in prime areas range between US$14 and $18 a square
\nmeter a month, while in the non-prime areas it ranges between $8
\nand $13 a square meter a month.<\/p>\n
Rents are expected to remain the same or increase slightly in
\nthe next 12 months, the company predicted. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/office-occupancy-rate-seen-to-drop-next-year-1447893297",
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"sponsor": "Okusi Associates",
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