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Jakarta Post

Jakarta CBD office space occupancy rate drops

Jakarta CBD office space occupancy rate drops Office buildings stand among other tall buildings in Jakarta. (Tempo.co/Tony Hartawan )
Winny Tang
Jakarta   ●   Thu, January 5, 2017

The occupancy rate for office space in Jakarta’s central business district (CBD) was continuing to show a decreasing trend as a result of oversupply, property consultant Colliers International said on Thursday.

In the fourth quarter of 2016, the office space occupancy rate in the CBD stood at 84.8 percent, which was a 4.6 percent decline year-on-year (yoy).

“This trend is expected to continue in 2017, since a huge gap exists between supply and demand,” Colliers International senior associate director Ferry Salanto said on Thursday.

(Read also: Rise of e-commerce expected to revive oversupplied office market)

Rise of e-commerce expected
to revive oversupplied
office market - See more at: http://cbe.thejakartapost.com/news/2016/07/21/rise-e-commerce-expected-revive-oversupplied-office-market.html#sthash.oY6gdge6.dpuf

He said additional supply would be coming in the future as many office buildings that were expected to be completed in 2016 had rescheduled their construction progress for this year.

Thus, the CBD area is expected to see office space of more than 700,000 square meters in 2017, contributed by 12 office buildings. (bbn)