Colliers International releases Q2 2017 Office Demand Index
Large businesses have been fuelling Adelaide office demand in the six months to June 2017, as outlined in Colliers International’s latest Office Demand Index.
The report highlights that large-scale companies have been more active throughout the first two quarters of this year than they were during the same period in 2016, with transactions such as optical manufacturer Zeiss committing to 3,500sqm at the Tonsley Innovation District having a significant impact on the office market.
June year-to-date (YTD) figures show that 104,050sqm of office space was in demand in Adelaide, about 20,000sqm more than this time last year. The total number of enquiries from businesses decreased slightly, indicating that businesses are seeking larger spaces.
According to the index, the average enquiry size in Adelaide rose from 610sqm in June YTD 2016 to 963sqm June YTD 2017.
“The number of businesses enquiring for office space more than 1,000sqm increased by 45 per cent and the area enquired for more than 1,000sqm rose 62 per cent, when comparing data from the six months to June this year with year-to-date June 2016 figures,” Colliers International’s state chief executive for South Australia, James Young, confirmed.
The number of businesses actively moving in Adelaide has also picked up from last year, with a 32 per cent increase in transactions and a 162 per cent increase in the area of office space transacted.
Mr Young said at this time last year, the market saw the majority of deals being transacted by businesses seeking office space less than 1,000sqm.
“It’s a different story this year, with the first half of 2017 seeing an additional 13,000sqm transact for businesses requiring more than 1,000sqm,” he said.
“Our insights into current market demand – and what we know is pending – predict greater activity in the CBD market during the next 12 to 24 months than we have seen for some time.
“Furthermore, our involvement in specialist projects in the metropolitan area has seen a spike in occupier demand ranging from 30sqm to 3,000sqm.
“There are specific reasons for this demand uplift, unique for each project we are involved in. We are proud to be a part of and contributing to these really exciting and dynamic trends.”