The Adelaide Office Market is heading into the second half of the year with positive news. The total amount of office space enquired for in 2017 May YTD has increased by 44% in comparison to the same time 2016.
Around 70% of all the enquiries are still coming from small business looking for office space in Adelaide under 1,000sqm; however, the number of larger business looking for space over 3,000sqm in Adelaide is on par with the likes of Brisbane and Sydney.
The average size of a business looking for office space in the Adelaide market has also increased from prior year up from 587sqm to now 1,030sqm. It seems that the Insurance sector is driving majority of the larger requirements in market followed by the Education and Training sector, Property Services and Government sectors.
The Adelaide office market has also seen an increase in the number of businesses transacting in 2017 thus far compared to the same prior in 2016. The market has seen transactions increase almost threefold in terms of area. The average size of businesses transacting have increased from 290sqm in 2016 May YTD to now 777sqm.
Jeevan Deut, Associate Director Office Leasing states “It is interesting in a perceived low demand environment how negative sentiment can takeover people’s perceptions. We are finding the leasing market is now starting to turn with a sound level of enquiry and anticipated tenant movement, we have now passed a trough in tenant demand and now trending back up.”
Moving into the second half of 2017 we do expect the demand for office space in Adelaide to rise and we expect larger businesses to transact.
For further information contact Jeevan Deut >>