Tight available space constrained Greater Jakarta modern logistics warehouse net absorption despite continued new leasing activity

• The Greater Jakarta modern logistics warehouse market demonstrated steady performance in 1Q26, though constrained demand conditions persisted throughout the period. The vacancy rate increased slightly to 4.2% from 3.6% at the end of 2025. While new tenant commitments remained steady, tenant departures offset these gains, resulting in limited net absorption despite ongoing leasing activity.
•  Greater Jakarta’s modern logistics warehouse supply reached 3,203,695 sqm following two new completions in 1Q26, totalling 29,540 sqm. Healthy occupancy levels and modest supply additions expected in 2026 continue to support the market, with single-digit vacancy rates maintained as limited available space constrains net absorption activity.

Eastern corridor completions pushed Greater Jakarta modern logistics warehouse supply to 3.2 million sqm while maintaining healthy single-digit vacancy levels

• The Greater Jakarta modern logistics warehouse leasing market experienced positive rental growth during 1Q26, with base rental rates increasing 3.96% q-o-q and 4.88% y-o-y.
• Several projects raised their asking base rents in response to constrained available space.

Limited supply and high-specification completions drove positive rental growth across Greater Jakarta modern logistics warehouse market

• High-specification new completions have elevated submarket asking rents, creating a ripple effect that benefits competing properties and overall area performance as premium developments establish new pricing benchmarks that allow existing landlords with comparable assets to adjust their rates upward.
• This sustained momentum has reinforced Greater Jakarta as the prime investment destination, with established players’ strong track records attracting capital inflows through share sales, fund injections, and asset acquisitions.

Outlook: A record supply year is anticipated in 2027 as established players advance phased land bank development

• The eastern corridor remains favourable for investors and occupiers, with cumulative modern logistics supply projected to exceed 4 million sqm by 2028 while maintaining healthy single-digit vacancy around 9%.
• Limited supply and high-specification completions in strategic locations continue driving positive rental growth. Premium pricing varies by tenant type and product requirements, creating upward rate momentum across the submarket. New high-spec developments elevate asking rents, benefiting competing properties and strengthening overall area performance through 2028.