Lease or Buy? Your Business Property Decision In Adelaide Lease or Buy- Your Business Property Decision In A | Page 6

Knight Frank’s Adelaide CBD Office Market Overview revealed there was
$921.8 million worth of transactions over $10 million in the office market last
year.
The figure is well above the 10-year average of $430.73 million per annum and
more than double the 2017 figure of $417.70 million.
At a glance:
 Knight Frank’s Adelaide CBD Office Market Overview revealed there
were $921.8 million worth of transactions over $10 million in the office
market last year.
 The figure is well above the 10-year average of $430.73 million per
annum
 The report found the investors were predominantly based interstate or
overseas.
One key factor in the uptick in sales was increased investment in the defence
and renewable energy industries, which brought more tenants to Adelaide.
Ben Burston, head of research and consulting at Knight Frank, said the abolition
on commercial stamp duty, combined with the city’s attractive property yields
compared to the country’s east coast markets, also contributed to the surge in
activity.
“With a-grade space accounting for 46 per cent of the transactions, the demand
for prime assets is evident as investors look to Adelaide due to its attractive
value proposition compared to the lower yielding east coast markets,” he said.
“Alongside increasing demand in the prime market, investors are also seeking
more affordable, secondary assets or those with value-add potential.”
The report found the investors were predominantly based interstate or
overseas.
Knight Frank’s Victorian and South Australian head of institutional sales Guy
Bennett said substantial Singaporean capital was also flowing into Adelaide.