Adelaide office vacancy reflects transitioning economy
All grades of office space in the Adelaide CBD are now at double digit vacancy levels, resulting in the country’s second-highest office vacancy rate behind Perth.
The Property Council of Australia’s latest Office Market Report has revealed a slight decrease in Adelaide CBD vacancy levels from 16.2% to 16.1%, while Fringe vacancy decreased from 11.3% to 10.1%, in the six months to July 2017.
“While the headline figures reveal six-month decreases in CBD and Fringe vacancy rates, we shouldn’t be popping the champagne corks yet,” said SA Executive Director Daniel Gannon.
“There is almost 230,000sqm of vacant office space in the CBD, which is 57% higher than the historic average. Of this total vacant space, 36% sits across C and D Grade office stock.
“That points to a story about transitioning this ageing and empty stock to residential offerings, and chasing tenants and residents to relocate to Adelaide.
“Adelaide is facing myriad economic challenges right now and that means our policy-makers need to unashamedly make South Australia the most attractive investment destination in the country.
“Without sustainable population growth, the property sector and our state are at risk of losing investors and gaining more octogenarians.
“Attracting more large companies to South Australia is vital. When big companies move into a region, they bring staff and opportunities, and they also occupy CBD office space and create ecosystems of smaller businesses around them.
“That’s why the Property Council is establishing a Company Headquarters’ Taskforce to showcase our state to job-creating businesses.”
Property is South Australia’s largest private sector employer and biggest industry, accounting for 10.8% of the state’s economic activity (or $10.5 billion).
It builds prosperity by paying $4.4 billion in wages and salaries – one in six people draw their wage directly or indirectly from property – and one million South Australians have a stake in property through their super funds.
Property is the largest single industry contributor paying 56.6% of state taxes, local government rates, fees and charges.
Media contact: Daniel Gannon |E [email protected]