This article is from the Australian Property Journal archive
THE South Australian state government has leased 7,100sqm of space in the Adelaide CBD’s 50 Flinders Street building.
The sub-lease deal within the 15-level, A-grade tower of 21,750sqm was negotiated by Colliers International’s James Young on behalf Santos.
Developed by Cbus Property, it was completed late in 2015 and is adjacent to oil and gas group Santos’ headquarters, with Santos also tenanting the added space in the 50 Flinders Street building.
“This deal forecasts a positive leasing environment for South Australia in 2017, with activity expected to increase due to lease expiries and organisational restructuring,” Young said.
Young said that combined with stock withdrawals and tightening development supply, positive net absorption and a reduction in vacancy rates are anticipated, from 16.2% to 15.9% in the half of 2017 and further beyond.
“An increase in enquiry levels in the latter part of 2017 is also expected to continue, generating greater absorption in the coming months. Demand is starting to show signs of improvement, with small to medium enterprises growing, and sectors such as education and health, in particular, are expected to drive demand in the coming 12 months,” he added.
Young said the market is expected to continue to experience a flight-to-quality, as tenants trade up into better quality premises, with well-located A- and B-grade buildings will to perform well on the basis that landlords are actively engaged in the leasing process.
Australian Property Journal
