Adelaide has recorded the nation's strongest levels of demand for office space in the latest Property Council Office Market Report and set new records at the same time.
Driving a reversal of the city's headline vacancy rate - from 19.3 per cent to 17.5 per cent - Adelaide has lost the dubious honour of being Australia's office vacancy capital to Melbourne (now at 18 per cent vacancy).
Property Council's South Australian Deputy Executive Director Richard Fowler said demand is almost 600 per cent above the historic average for the Adelaide CBD.
"There's 600 reasons to feel cautiously optimistic about Adelaide's office market environment despite some of the obvious challenges facing the sector and economy," Mr Fowler said.
Key findings in the July 2024 Office Market Report for Adelaide include:
- Vacancy in Adelaide decreased from 19.3 to 17.5 per cent
- Australian office vacancy decreased from 14.8 to 14.6 per cent
- Adelaide net demand was 29,041 m2 (well above historic average of 4,932 m2)
- Adelaide's net supply came in at neutral, down from January at 1.9 per cent
- Supply could slow from 2025 after delivery of 150 Grenfell and 42-46 Franklin
"The only other capital city in Australia recording above average demand is Brisbane, but Adelaide has taken home gold in this particular race for space.
"Record office demand is yet another indication South Australia's economy is match fit after ranking first for three consecutive CommSec state of the state's report.
"Vacancy is now heading in the right direction in Adelaide, with companies understanding the value proposition of office space in their workforce strategies.
"Offices are not just places where people work, they provide opportunities to socialise, innovate and participate in the vibrancy of precincts that support the local economy.
"These realities are immensely attractive to companies seeking to offer their employees something more than just a desk and a salary.
Richard Fowler | 0402 659 892 |
