Lighting up the west in Adelaide’s CBD as city centre shifts
An east to west shift in the centre of Adelaide’s CBD over the past decade, driven by the RAH relocation and laneways program, is becoming more pronounced says JLL research boss Rick Warner.
SA Business
Don't miss out on the headlines from SA Business. Followed categories will be added to My News.
- Moving RAH will cost East End millions of dollars in lost revenue
- Prizes, discounts, freebies: Check out the latest subscriber rewards
An east to west shift in the centre of Adelaide’s CBD over the past decade is becoming more pronounced says JLL research director Rick Warner.
From 1990 to 2009, more than 60 per cent of all new prime office supply was on the eastern side of King William Street he said but over the last 10 years this trend has been reversed with more than 55 per cent of new prime supply developed on the western side of the city.
“New office developments, predominantly along Franklin Street, have resulted in a shift of the economic heart of Adelaide. This gradual pull towards the west has been accelerated by a number of factors,” Mr Warner said.
”The introduction of small bar licenses in 2013 was the catalyst for the rejuvenation of Adelaide’s most successful laneways, Peel and Leigh Streets and are now the epicentre of an established hospitality laneway network that runs from North Terrace to the Adelaide Central Market, improving the social amenity for people working in the area.”
The incremental expansion of the University of SA City West campus has boosted student numbers and accommodation development he said.
The most critical factor in the growth of the western CBD was the relocation of the Royal Adelaide Hospital from the eastern edge to the western edge of North Terrace in 2017 Mr Warner said, moving about 6,000 workers, 400,000 annual outpatients and the visitors to about 85,000 annual inpatients.
“This monumental rebalance of daily foot traffic has created an unprecedented tangible vibrancy in this side of the city.”
Accordingly, 60 per cent of prime office developments in the supply pipeline are now west of King William Street. Developers, who recognised this momentum shift early, have now acquired development sites along Franklin, Currie and Waymouth Streets.
Jamie Guerra, JLL head of industrial and logistics (Australia), who is selling 47-53 Light Square/141-149 Currie Street, Adelaide, says confidence in the Adelaide leasing market has been driven by demand over the past 12 months and resulted in greater interest from national and overseas value-add funds and developers prepared to move up the risk curve chasing returns.
“This capital recognises the impact of infrastructure and the investment along North Terrace and the structural shift in the CBD to the west has seen demand move the sites like Currie Street and Light Square,” he said. “The additional benefit of this site is the ability to deliver holding income from the improvements while planning and precommitments are being worked through.”
The property overlooking Light Square is ideally suited to developers, owner occupiers and investors looking to capitalise on the significant income from the existing car park and improvements while planning and undertaking their proposed redevelopment of the site Mr Guerra said.
The property is offered with vacant possession and has a development site of 3,267sq m with three street frontages and a 260 bay six level multi deck carparking station.
Its substantial and functional existing improvements are able to generate immediate holding income or occupancy he said. There is additional on grade onsite carparking.
The property is zoned capital city and has a huge scope for redevelopment with a 53 metre height limit envisaged Mr Guerra said.
It has an estimated passing net income circa $500,000 annually.
For sale by expression of interest closing Monday April 6.