This article is from the Australian Property Journal archive
33 King William Street, one of Adelaide’s most prominent office towers is up for grabs, after a local private investor listed the high-profile CBD asset.
The 19-level 10,950sqm office tower comprises retail across its ground floor, a mezzanine and 17 upgraded upper levels, having undergone works during the current ownership.
Ian Thomas and Alistair Laycock from CBRE, alongside Guy Bennett and Jed Harley from Cushman and Wakefield, have been appointed to manage the sale of the asset, via an expressions of interest campaign.
The office tower is currently 86% leased with a healthy tenant mix across industries including law, banking, software, travel and food and retail outlets across the retail component.
Each occupying a full floor, the building’s largest tenants include Adelaide Festival Corporation at 605sqm, Frontier Software at 599.2sqm, DFP Recruitment at 573sqm and Carlson Wagonlit at 577sqm.
“The multi-tenanted make-up of 33 King William Street mitigates expiry risk for the future owner and the building also offers a strong cash flow, with the potential for income and value upside via leasing the vacant space and capturing rental growth,” said Thomas.
The tower is amongst the Adelaide CBDs’ leading spec suite offerings, with more than one-third of the asset providing speculatively fitted-out office suites, in line with the city’s current 70% of tenant demand looking for office space in the sub-300sqm segment.
“Over the past three years, there has been a strong net absorption in the building, capitalising on the city’s strong leasing enquiry post COVID, and Adelaide’s nation-leading occupancy figures,” said Bennett, referring to Adelaide’s position as holding the country’s highest rate of occupancy, increasing from 71% in August to 78% over September.
“Over the past three years, nearly a third of the building has been fitted out with spec suites with the owner struggling to meet demand as they were built. More recently, several suites have been leased to second and also third generation tenants.”
The expressions of interest campaign for 33 King William Street is scheduled to close on 16 November 2022.
