Adelaide’s buoyant commercial property market is showing no signs of slowing on the back of nearly $1 billion of CBD property sales in 2018.
Commercial sales and demand for new generation CBD building occupancy continue to thrive simultaneously due to the roll-out of innovative infrastructure such as Ten Gigabit Adelaide, historically high confidence measures and the abolishment of commercial stamp duty.
The latest prime commercial building to hit the Adelaide market is 25 Grenfell Street, currently owned by Credit Suisse. The 25,385 sq m building was acquired just over two years ago for $125 million and has undergone upgrades to the foyer and air-conditioning systems, boosting its NABERS energy rating to four stars. The expected sale price is over $150 million, as property confidence continues to surge.
Knight Frank has attributed Ten Gigabit Adelaide, improved business confidence in the private sector, and strong occupier demand to the positive trajectory of investment in Adelaide. The Knight Frank CBD Office Market Overview for September 2018 also revealed Ten Gigabit Adelaide had played a significant role in propelling enquiries from interstate and international investors. Ten Gigabit Adelaide’s improved interconnectivity, cybersecurity and synchronised upload and download speeds has drawn new tenants from burgeoning sectors, including technology, mining and defence, who seek to capitalise on the revolutionary infrastructure.
NEXION Networks is among the various domestic and international companies to establish headquarters in Adelaide CBD. The leading Asia-Pacific technology solutions provider sees Ten Gigabit Adelaide as bedrock to their growth and sees the high-speed, high-performance fibre optic data network as a “technology enablement platform of global scales”. The high speed and high-quality data connections of Ten Gigabit Adelaide will allow NEXION Networks to deliver cutting edge solutions including the full suite of ICT, Public and Private Cloud, Enterprise Security, Global Networks and Telecommunications solutions.
Datacom, one of Australasia’s largest professional IT services companies, also cited Ten Gigabit Adelaide a main driver in the decision to move to new premises on Franklin Street last year.
“Through the Ten Gigabit Network, the City of Adelaide is establishing Adelaide as one of the fastest connected cities in the world, which will help drive innovation and growth. Datacom is excited to support business growth in Adelaide via the capability of this new network,” said Datacom Director SA Mr Clements.