Adelaide office market prospects pick up

Adelaide office market prospects pick upAdelaide’s commercial market has good prospects in the short to medium term as a new report finds it has the smallest gap between supply and demand of any of the major cities.At CBRE’s inaugural Adelaide Market Outlook breakfast, experts stated that the capital was nearing a peak in vacancy figures in the office market with little in the forward supply line.It is expected that in the short-term office vacancies would continue to rise to 14 per cent in the CBD.The report also forecast a net absorption of office space thanks to the strength of South Australia’s health and education sectors”these two sectors account for 17 per cent of the state’s GDP, above the national average of 14 per cent.The result should be that South Australia should lead the country in net absorption from 2015-16 and perform above the national average over the next three to five years.Other points raised at the breakfast include burgeoning demand for industrial stock from the logistic sector with transport and storage replacing manufacturing in terms of activity.In the retail sector, the report highlighted how expected retail sales growth should increase stabilisation in the industry and also noted how foreign entrants were assisting retail vacancy figures. Tenant activity in retail is also being driven by the food and beverage sector.