The Adelaide city skyline is evolving as developers seek to take advantage of the strong acceleration in investment and rapidly declining office vacancy.
On the back of unprecedented and sustained levels of high property and business confidence, local developer Kyren Group has commenced building on a 14-storey office tower. The tower will be situated at 102-108 Wakefield Street and will encompass 14,000sq m. Theo Samaras, Managing Director of Kyren Group, noted the project has been propelled forward in response to the emerging trend of global businesses such as Boeing, Babcock International and Technicolor establishing headquarters in Adelaide. The Tower design by Cheesman Architects will include floor-to-ceiling glass windows, bike racks and full-service facilities to deliver an internationally-competitive standard of amenities. Completion is expected next year.
The move comes as commercial office vacancies in the CBD have dropped for the fourth period in a row. While the Property Council of Australia office market report showed a 0.5 per cent decrease, premium vacancy dropped 2.5 per cent revealing particularly high demand for quality stock. Collier’s second quarter market snapshot of 2018 also revealed the downward trend with an expectation of a zero-vacancy rate within new generation city buildings in early 2020. Demand has been propelled by business expansions and new tenants across burgeoning sectors, including defence and mining, and revolutionary infrastructure investments like Ten Gigabit Adelaide.
The upward momentum of positive market conditions continues to grow after South Australia led the charge nationally across all other confidence measures throughout 2018. For the June quarter, the ANZ/Property Council (of Australia) Survey revealed historic peaks in confidence in South Australia not only in the property sector but also in economic growth expectations and economy management.
Kyren Group are also in the process of delivering Frome Central Tower One which incorporates the current Crown Plaza hotel, a 400-space car park and 83 private residences. Upon completion in 2020, the Frome Central Tower One will overtake the Westpac Building as the tallest building in Adelaide.
Image: Kyren Group