Limited Stock, Green Offices Increasingly in Demand

Amid ongoing economic challenges at the local, regional, and global levels, the property sector has felt a significant impact on its performance.

The office sector is one of the primary benchmarks for assessing commercial property performance. Its performance not only reflects property market dynamics but also serves as an indicator of investment flows, business expansion, and job creation — not to mention the multiplier effect it generates in driving various downstream sectors.

Office leasing transactions in the first half of this year involved not only existing tenants but also new tenants, both local and global. Meanwhile, government tenants currently dominate office space absorption in the Jakarta CBD.

Green offices, with their strong appeal, have added a distinctive dimension to competition in the Jakarta CBD office property market. Green office stock, comprising 37% of total CBD office supply, has attracted 41% of new CBD tenants currently occupying green office space.

Data from Knight Frank Indonesia provides an update on Jakarta CBD office market performance: office supply in the Jakarta CBD remains at around 7,326,495 square metres, and occupancy continues to show recovery, albeit slowly, edging up to 80%. Average rental prices are gradually strengthening by 3% year-on-year, with space absorption throughout 2025 reaching 47,466 square metres.

Willson Kalip, Country Head of Knight Frank Indonesia, said that going forward, flexibility and adaptation to quality green amenities will be the differentiating factors.

“With supply expected to remain unchanged over the next two years, the recovery trend in CBD office performance has the potential to continue, supported of course by more conducive social and economic stability,” he said.