Sudirman Corridor is the Preferred Choice for Both Domestic and International Employees

The office space market in the Central Business District (CBD) of Jakarta remains stable, with the Sudirman corridor holding the most demand. This is according to a recent report by Knight Frank Indonesia

The high demand for office space in Sudirman was demonstrated by the strong supply throughout the end of 2022.

The Associate Director of Occupier Strategy & Solutions at Knight Frank Indonesia, Andi Rina Martianti, stated that the opening of borders for foreign nationals in Indonesia after the pandemic has subsided has boosted occupancy levels.

Rina explained that Sudirman is still the most sought-after location for both foreign and local workers due to its well-developed commercial facilities, prestigious buildings, and comprehensive public transportation infrastructure. The availability of public transportation, in particular, makes the Sudirman corridor a favorite among occupiers.

The Senior Research Advisor at Knight Frank Indonesia, Syarifah Syaukat, added that the largest supply and demand aggregate in the office sector is still in the Sudirman corridor, commonly known as SCBD.

The supply of office space in Sudirman amounts to 2.9 million square meters, the largest compared to Thamrin (513,587 square meters), Gatot Subroto (1.07 million square meters), and Kuningan (2.4 million square meters).

Meanwhile, demand reached 2.2 million square meters by the end of 2022, with an average occupancy rate of 75.4%. The second-highest demand for office space is in Kuningan, with 1.7 million square meters and an occupancy rate of 72.4%.

Despite the stagnant and weak rental prices in Jakarta’s office building market, Knight Frank’s report shows optimism in the market.

The premium office building rental prices are Rp284,725 per square meter, Grade A buildings are priced at Rp241,584 per square meter, Grade B buildings are priced at Rp181,427 per square meter, and Grade C buildings are priced at Rp143,562 per square meter.

Overall, the report suggests that the office space market in Jakarta’s CBD remains robust, with the Sudirman corridor continuing to be the most attractive location for occupiers due to its well-established infrastructure, amenities, and accessibility.

For information, Sudirman Central Business District (SCBD) is a mixed-use development area situated in South Jakarta, Indonesia, which comprises of condos, offices, hotels, shopping centers, and entertainment facilities.

The district spans around 45 hectares, and it is divided into 25 lots, with 13 hectares dedicated to road network and landscaping. It falls under the Golden Triangle area of Jakarta and has seven different entry and exit points to various parts of the city.

The majority of the office buildings within the district are linked through underground pedestrian pathways.