Jakarta's office market is splitting into two stories. Grade-A inventory in SCBD and Mega Kuningan is leasing at IDR 350-400K/m²/month — within 8% of pre-pandemic peaks — while older Grade-B stock in the CBD periphery continues to underperform with vacancies above 25%.
The driver is consolidation: tenants are using lease renewals to upgrade quality and centralise teams. Hybrid working has reduced total footprint demand but raised the bar on building quality, amenities, and ESG credentials.
For investors, whole-floor Grade-A acquisitions with sitting anchor tenants offer the most attractive risk-adjusted yield. Avoid value-add plays on older inventory unless deeply discounted — the recovery is not coming evenly.
