Adelaide CBD vacancy rates buck expectations
Office vacancy rates in Australia’s most liveable city have defied expectations and decreased over the six months to July 2021.
This decrease in vacancy is due to positive demand and withdrawals, with a significant amount of space due to come online in 2022.
The below comments can be attributed to Daniel Gannon, SA Executive Director of the Property Council of Australia.
Adelaide’s office market has bucked expectations with vacancy rates decreasing during COVID.
This demonstrates the resilience of Adelaide’s office market and is a testament to South Australia’s handling of the pandemic.
There was more vacant space in July 2017 and a higher vacancy rate than there is in the Adelaide CBD four years later – an extraordinary situation given the global pandemic.
The same applies to the state’s unemployment and participation rates, yet here we are in 2021 facing ongoing economic uncertainty but delivering improved results.
This paints an incredible picture of resilience in Adelaide despite global unrest. It's no wonder The Economist ranked Adelaide as the country’s most liveable city.
Landlords around Australia should also be proud of the role they have played over the past 15 months, providing more than $15 billion in financial support to tenants.
Media contact: Daniel Gannon | M 0421 374 363 | E [email protected]
- Vacancy in the Adelaide CBD decreased from 16.0 to 15.7%
- This was due to net absorption of 3,026sqm and withdrawals of 1,120sqm
- A Grade vacancy decreased from 13.0 to 11.9% due to 6,566sqm of net absorption
- B Grade vacancy increased from 18.1 to 18.4% due to -1,612sqm of net absorption
- C Grade vacancy decreased marginally from 20.8 to 20.7%
- D Grade vacancy increased from 13.9 to 14.8% due to -2,097sqm of net absorption
- No space is due to come online in the second half of 2021
- 73,636sqm is due to come online in 2022
- A further 7,310sqm is due to come online from 2023
- 47,000sqm of space is mooted