Insurance sector drives demand for Adelaide office space

Insurance sector drives demand for Adelaide office space
Insurance sector drives demand for Adelaide office space

Demand for office space in Adelaide is growing according to Colliers International, who believe the local office market is heading into the second half of 2017 with a positive outlook.

Jeevan Deut, Colliers International’s associate director for Office Leasing in South Australia said about 70 per cent of all enquiries continue to come from small business looking for office space less than 1,000sqm.

“It is interesting to note that the number of larger business looking for space greater than 3,000sqm in Adelaide is on par with the likes of Brisbane and Sydney," he said.

“The average size of a business looking for office space in the Adelaide market has also increased from prior year, up from 587sqm to 1,030sqm.

“It seems that the insurance sector is driving the majority of the larger requirements, followed by the education and training sector and the property services and government sectors.

“Our market has seen transactions increase almost threefold in terms of area.

“The average size of businesses transacting has increased from 290sqm in the five months to May 2016 to 777sqm in the five months to May this year.

"The perceived low demand environment was consuming people’s attitudes and fuelling a negative sentiment towards the office market.

“We are finding the leasing market is now starting to turn.

“With a sound level of enquiry and anticipated tenant movement, we have passed a trough in tenant demand and are now trending back up.

“Moving into the second half of 2017, we expect the demand for office space in Adelaide to rise and larger businesses to transact.”

Colliers International’s research database has recorded the total amount of office space enquired for year to date to have increased by 44 per cent when compared to the same time last year. 

Tags: 
Adelaide Office Market

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