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Jakarta Post

Demand for office space to soar next year

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, December 21, 2017   /   03:51 pm
Demand for office space to soar next year The Jakarta Skyline. (Tempo.co/Tony Hartawan )

Real estate consultancy firm Savills Indonesia estimates that the demand for office space in Jakarta will almost triple next year amid a rapid expansion of e-commerce companies in the country.

Savills research and consultancy head Anton Sitorus said in Jakarta on Wednesday that the increase in the demand would not, however, cause an increase in rental rates because of a concurrent increase in supply from newly constructed office buildings.

“We estimate there will around 875,000 square meters of additional office space in the Central Business District (CBD) in 2018. Consequently, the vacancy rate will rise to 26 percent from 21 percent this year despite the high demand,” he said at a press briefing.

He said that the additional office space in 2017 had reached about 515,000 square meters after the opening of 10 new buildings.

Savills estimated that 1.4 million square meters would be available in the CBD between 2018 and 2020, while in the non-CBD market, additional office space would reach 600,000 square meters in the same period.

Anton said many tenants, who initially moved out from the CBD for cost-saving reasons were returning because of the improvements to public transportation. (jlm/bbn)