The latest Property Council Office Market Report reveals a drop from 14.2 to 12.8 per cent for the city, while city fringe vacancy has increased from 12.6 to 13.1 per cent in the six months to July 2019.
Lord Mayor Sandy Verschoor said the ongoing surge of property confidence was another example of Adelaide’s growing reputation as a smart and innovative place to do business.
“While Adelaide’s CBD office market vacancy rates continue to drop, business confidence levels are also at an all time high,” she said.
“Our city’s size, scale and layout gives us a valuable edge when it comes to doing business. We put people at the centre of everything we do, with a focus on well-being and quality of life, without compromising lifestyle or business productivity."
"More businesses in the city means more jobs and greater career opportunities for the local community."
“It also reflects the positive impact projects like Ten Gigabit Adelaide are having to ensure Adelaide is positioned as one of the most smartest and connected cities in the world.”
Savills SA office leasing director Adam Hartley said that was in part due to tenants seeking access to the Ten Gigabit high speed internet network, convenient public transport routes and competitive rental rates.
“The typical fringe market has seen an increase, albeit small, in vacancy rates as tenants have moved to more efficient buildings or moved into the CBD,” he said.
“The move to upgraded buildings has placed pressure on the availability of good quality office accommodation, and there is a genuine need for more new or fully refurbished office buildings.”
JLL head of leasing Tom Budarick expects occupier demand to remain positive over the next 12 months.
"The demand for modern office accommodation from the defence sector cannot be understated," he said.
"There are a number of deals from defence-related occupiers that will boost absorption in the second half of 2019.
"On the back of this positive occupier demand, we've seen tangible improvement in property owner income levels over the last 12 months.
"Recent announcements in the space and defence industries along with an important City Deal for Adelaide should be the economic catalyst South Australia needs, driving vacancy rates down and stimulating the city's core."
To view the Office Market Report data series, visit the Property Council's Data Room.
Tom Budarick and Adam Harlet quotes from Adelaide CBD office vacancy rate at 5-year low by Giuseppe Tauriello, originally seen in The Advertiser 6 August 2019.
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