The supply of office space in the DKI Jakarta area is too much, but the level of occupancy is not balanced with the number of existing office spaces. As a result, many offices and shophouses (ruko) are being sold or rented out.
Based on detikcom’s monitoring in the Jl. Barito, Kebayoran Baru, Sunday (29/1/2023), various offices and shop houses were empty. In fact, most of them are for sale or rent.
Shift to Jl. Melawai Raya, there are also many buildings for sale. In fact, access to the area is quite strategic because it is located on the side of the main road and close to the Blok M MRT station.
The condition is not much different from several buildings in the area of Jl. Wolter Monginsidi to Jl. Captain Tenden. Even though the buildings are located on the side of the road and are passed by public transportation such as TransJakarta, in fact there are still a number of buildings that look empty and are for sale.
detikcom’s findings are in line with the results of Cushman & Wakefield’s research which said that many office spaces in the Central Business District (CBD) Jakarta area are expected to remain vacant in 2023. This is due to the completion of a large office project in 2023 so there is a possibility of excess supply.
Around 136,000 m2 of office space from the Mori Tower and Luminary Tower projects will enter the Jakarta CBD market in 2023. The two projects are expected to be completed in the first quarter of 2023. Until now, the combined pre-commitment level of the two projects is still below 50% %.
“After 2023, supply is increasingly uncertain with several projects that are ready to go, not yet starting construction,” said Director of Strategic Consulting Cushman & Wakefield Arief Rahardjo in a written statement, quoted on Wednesday (21/12/2022).
Tenants are projected to remain cautious and postpone major decisions in anticipation of a global economic slowdown. However, the occupancy rate of office space is predicted to be stable at around 100,000 m2.
Arief revealed that despite positive net absorption, rental prices are expected to remain under pressure in 2023 due to intense competition. In fact, some landlords may continue to offer substantial discounts on published rates in order to attract tenants.
“Rent growth is expected to return to positive territory starting in 2024 following forecasts of an improving economy,” said Arief.
Meanwhile, in 2022 there will be around 120,000 m2 of office space supply in the Jakarta CBD market. The occupancy rate of office space is estimated to reach 100,000 m2 in 2022. This is due to recovering demand for space and driven by company consolidation and quality improvement.