Increased office supply underscores increased interest in SA
Almost 30,000 sqm of office supply additions has increased the Adelaide CBD vacancy rate, according to the Property Council of Australia’s Office Market Report.
The latest Office Market Report reveals an increase from 12.8 to 14.0 per cent for the city, while fringe vacancy has risen from 13.1 to 14.7 per cent in the six months to January 2020.
Property Council SA Executive Director Daniel Gannon believes there are reasons to be optimistic.
“Almost 27,000 sqm of additional space is due to come online this year in the CBD, followed by more than 50,000 sqm from 2022 onwards,” he said.
Mr Gannon said this latest report has set a new record with the largest amount of A-Grade supply coming online in Adelaide in the past seven years.
“Vacancy in the A Grade segment has increased from 12.3 to 13.8 per cent due to 29,500 sqm of supply additions, confirming a heightened level of confidence in Adelaide.
“Over the next three years, Adelaide’s CBD profile will rise significantly with iconic buildings reshaping the city’s commercial heart.
“This is good news for investors, building owners, tenants and consumers alike, with ground floor retail spaces injecting more life and energy into the city and upper levels providing modern environments for workers.
“South Australia is a ‘commercial stamp duty free zone’ and now boasts a more competitive land tax regime, which as a package is a compelling proposition for investors.
“This state’s anti-competitive land tax rates and low thresholds have long discouraged investors from looking to invest here, which means it’s time to advertise our new tax settings.”
Mr Gannon said the past year has delivered spectacular prime grade offerings like Charter Hall’s GPO Exchange and Uniting Communities’ U-City, which have re-defined the local office market.
Adelaide CBD six-monthly net supply (January 1990 to January 2020)
Media contact: Daniel Gannon | M 0421 374 363 | E [email protected]