Jakarta office market records around 3 million sqm of unabsorbed space
The vacancy overhang may preserve tenant leverage, deter undifferentiated development and encourage owners to upgrade existing buildings to meet corporate and ESG requirements.
Jakarta has around 3 million sqm of vacant office space, with nearly 60% in the CBD despite improved net absorption during 1H 2026.
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The vacancy overhang is keeping the market tenant-friendly.
Jakarta's office market continues to favour tenants despite improving leasing activity, with around 3 million sqm of vacant office space still available, according to Colliers.
Colliers said nearly 60% of the unabsorbed space is located in the CBD. Although net absorption improved during the first half of 2026, the large vacancy overhang continues to encourage landlords to adopt more flexible leasing strategies to meet changing occupier requirements.
The agency said the current market conditions make it difficult to justify new office developments unless they are supported by captive demand or a highly differentiated market position.
Instead, Colliers said building owners are better placed to invest in asset enhancement, including lobby upgrades, lift modernisation, toilet refurbishment, façade improvements, indoor air quality, building systems and green certification to attract corporate tenants seeking higher-quality workplaces.
According to Colliers, the current pause in new supply provides landlords with an opportunity to reposition existing assets before the next development cycle, while buildings that delay upgrades risk a slower recovery as occupiers increasingly prioritise convenience, ESG performance and employee retention.