East Jakarta and Cikarang drive record net absorption to 176,000 sqm as new completions fuel market growth

• Net absorption recorded higher figures exceeding 176,000 sqm, surpassing the previous two quarters’ performance. Most demand came from newly completed facilities, including Cella’s third development in Cakung and SPIL’s second project in Greater Jakarta area.
• Additional inquiries emerged for facilities with automatic sortation, where tenants requiring assembly permits may commit long-term for 10,000-20,000 sqm areas and open yards short-term, while green initiatives depend on infrastructure readiness.

Three new developments entered the market as vacancy rate improves to 5.6% from previous quarter’s 5.9%

• Three new developments entered the market in the quarter: Cakung Modern Logistics Warehouse, SPIL Logistics Hub MM2100, and Building B1 in SLP Karawang. With total new supply of 175,400 sqm, further new completions are expected in Q4.
• The cumulative supply of modern logistics warehouses in Greater Jakarta surpassed 3.1 million sqm. One BTS and three other completions are expected in Q4 2025, totalling 67,200 sqm.

Rental rates show healthy growth trajectory

• Despite global uncertainties and Indonesia’s dynamic macroeconomic landscape causing cautious business sentiment amid political tensions, sales activity persisted. Healthy GDP growth, sustained FDI/DDI, and SEZ incentives supported market resilience.
• Rents rose modestly in Depok-Bogor, Cikarang and Karawang. Landlords attracted tenants with payment flexibility, fit-out support, and rent-free periods. Properties with limited vacancy adjusted pricing downward for full occupancy.

Outlook: 2025 sets record demand year with single-digit vacancy rates expected to persist

• Next year, new supply will expand beyond the eastern corridor to Jakarta, Tangerang, and Depok-Bogor, while eastern corridor additions will be limited until 2027. Modest supply in 2026 will bring the total to 3.4 million sqm while maintaining single-digit vacancy rates.
• Greater Jakarta remains attractive with strong infrastructure, while Central/East Java cities are emerging as alternatives. Economic outlook and domestic demand support investment, though cautious sentiment pushes investors to demand higher yields for perceived risks.