Adelaide’s office leasing market has seen the highest level of tenant enquires since 2010, with a series of major world-renowned companies establishing footprints in South Australia.
Savills Adelaide’s Office Leasing team has delivered a diverse range of transactions in the past 12 months, including several record-breaking deals.
Suncorp Australia’s commitment to 1 King William Street saw the financial services company secure 4,662.4sq m across four levels at a rate of circa $500 per square metre, representing Adelaide’s largest deal this year.
Tightening in vacancy rates
Not only have we seen an increase in small to medium enterprises, we have also seen a large number of national and global companies improve the quality of their real estate and take advantage of recent high incentives.
Due to the increase in activity, the net absorption has been the highest in many years, which has resulted in a tightening of the high A, B, and prime-grade vacancy rate.
The shrinking vacancy rates have seen incentive rates dropped by circa 10 percent from the start of 2018, limiting supply of quality contiguous office space.
The roll-out of the Ten Gigabit Adelaide network in the CBD has provided a very attractive world-class technology solution for frequent, high bandwidth internet users.
New Zealand-based medical and technology company, Medi-Map Group, opted to establish its first Australian office in one of Adelaide’s premium co-working spaces at 12 Pirie Street. Adelaide’s high quality life style was also an attraction.
Companies are beginning to view Adelaide as a great relocation option due to cost effective rents, quality of workforce and quality of lifestyle.
Technicolor deal in Adelaide
Hollywood’s post-production and effects giant, Technicolor, is locating its Australasian office in Adelaide with assistance from the state government, which will provide funding from its economic investment fund to support the project.
With up to 500 new full time jobs created by Technicolor, the local precinct will be reactivated and in turn increasing local business that provide amenity to the workforce.
We believe that Technicolor’s entrance to Adelaide will bring more technology-based companies to Adelaide.
Continued support from the state government and local council will attract a variety of companies to Adelaide.