Adelaide office vacancy drops, green shoots bloom
The Adelaide CBD office vacancy rate has dropped for the fourth consecutive period, according to the Property Council of Australia.
The latest Office Market Report reveals a drop from 14.7 to 14.2 per cent for the city, while Fringe vacancy has increased from 11 to 12.6 per cent in the six months to January 2019.
Property Council SA Executive Director Daniel Gannon believes there are reasons to be optimistic.
“While Adelaide’s CBD has 203,000 sqm of office vacancy - the equivalent of 10 Adelaide Oval playing surfaces - this figure has decreased for the fourth consecutive period,” he said.
“Positive demand in the commercial office space is driving this result, with more tenants looking for high-quality office space, thus a decrease in prime vacancy.
“Premium vacancy in the CBD has decreased to 2.6 per cent, confirming a ‘flight to quality’ trend firmly in root. This also represents an historic low vacancy level and evidence of green shoots in bloom.
“While there has been positive movement across the prime grade stock, vacancy rates across other segments remain in double-digit territory.
“Adelaide’s skyline is changing faster than ever before, and the next 12 months will deliver significant additions to our city landscape. This is good news for property owners, but also good news for prospective tenants.
“With residential, commercial, retirement living, retail, health and medical, and student accommodation sites all delivering commencements or completions in 2019, there’s no lack of diversity in the construction work transforming the city.
“In simple terms, we’re seeing record numbers of hard hats and steel caps on the men and women in the property sector who are shaping so much of modern South Australia.
“Given South Australia’s property sector has recorded the highest confidence levels in the nation and on record - according to the latest ANZ/Property Council index - the future of our local market looks buoyant.”
Property is South Australia’s largest private sector employer and biggest industry, accounting for 10.8% of the state’s economic activity (or $10.3 billion).
It builds prosperity by paying $4.8 billion in wages and salaries – one in five 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 58.6% of state taxes, local government rates, fees and charges.
Media contact: Daniel Gannon | M 0421 374 363 | E [email protected]