NEWS

Technology tenants flex muscle in Adelaide office market

Colliers International helps Academy of Interactive Entertainment expand as IT&T demand rises

The Academy of Interactive Entertainment has doubled its floorspace in Adelaide on the back of significant growth in the technology sector.

AIE has leased an additional 500sqm at 32 Grenfell Street just over a year after first moving into the building in 2014. The new lease, facilitated by Colliers International’s Nick Bond, has seen the academy double its footprint in Adelaide within a year to a total of more than 1,000sqm.

“AIE already occupied about 260sqm each on Levels 2 and 3, but within a very short period needed to expand onto another two levels (Levels 5 and 7) within the building to accommodate its substantial business growth,” Mr Bond said.

The AIE’s existing lease was due to expire at the end of next year and has now been extended to 2020.

The expansion of AIE comes as Colliers International records continued growth in demand from technology tenants for office space across the country.

According to Colliers International research, in the year ahead, the IT, technology and communications sectors will continue to drive tenant demand. In Sydney, LinkedIn, Expedia and Twitter have either taken new space or expanded their footprint. US-based WeWork, the newest player in the short-term flexible office provider market, is also believed to be close to signing their first Australian lease in the Sydney.

“We are beginning to see this trend flow through to the local market,” Mr Bond said. “From 2014 to 2015, we saw a major spike in enquiry from tenants in the IT and technology sector for office space.

“These companies are driven by the need to attract the best talent, superior public transport and amenity.

“Buildings providing large floor plates and refurbished creative space have been popular, with quick let-up times and increased competition for these assets.”

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