Kyren Group starts work on $100m office tower on Franklin St

Developer Theo Samaras is putting his faith in the Adelaide office market with a new $100m speculative office project on Franklin St.

Adelaide developer Kyren Group is forging ahead with another speculative office development in the city, pushing aside concerns about rising vacancy rates and the uncertainty surrounding the future of hybrid work.

Construction has commenced on the $100m tower at 50 Franklin St, next to the PwC building which Kyren completed in 2014.

It will offer more than 21,000sq m of lettable space across 17 floors when it’s completed in late 2024.

Kyren Group, led by managing director Theo Samaras, has a long history of speculative development in Adelaide, with previous projects at 108 Wakefield St, 400 King William St and 70 Franklin St all commencing with little or no pre-commitment from tenants.

The developer was also behind construction of Adelaide’s tallest building - the Crowne Plaza hotel and Adelaidean apartments tower on Frome St - in 2020.

Artist's impression of Kyren Group’s office development at 50 Franklin St. Picture: Brown Falconer

While much of 108 Wakefield St, his most recent office project in the city, remains unoccupied, Mr Samaras remains bullish about the city’s prospects as it continues to emerge from the challenges posed by Covid-19.

“Kyren Group have been a great supporter of South Australia, with multiple developments over the past 30 years,” he said.

“The 50 Franklin St development is another $100m project that will support South Australian businesses and workers.”

Cushman & Wakefield’s Adam Hartley is managing the leasing campaign, with talks under way with prospective tenants.

According to the latest Property Council figures, the CBD office vacancy rate in Adelaide reached 16.1 per cent in January - its highest level since July 2017.

And that figure’s expected to rise by the end of 2023 as new developments including Charter Hall’s 60 King William St project and Walker Corporation’s Festival Plaza tower are completed.

Artist's impression of Kyren Group’s office development at 50 Franklin St. Picture: Brown Falconer

However with the current wave of office building activity nearing an end, Mr Hartley said that by the time it’s completed, the Franklin St tower would be one of few options for tenants seeking newly built accommodation.

Designed by Brown Falconer, the A-grade office building’s end-of-trip facilities include more than 170 bike parks, showers, lockers and “hotel-style” change-rooms, and tenants will also have access to the adjacent 700-bay Auto Park car park.

A “premium mid-rise” floor will provide a large outdoor terrace for corporate functions and meetings, while a retail tenancy will be offered on the ground floor.

Mr Hartley said a strong focus on sustainability had been incorporated into the design, which is targeting a 6 star NABERS rating through measures including all-electric mechanical plant, and solar and regenerative energy technologies.

He said it was all part of a push to attract companies looking for modern amenities and sustainable, high-quality spaces for their employees.

“Businesses are looking for buildings that provide economic office space that will attract new talent and retain experienced employees,” he said.

“They require a space that is inviting and attractive to staff that will want to return to the office to collaborate and build their individual company culture.”