Adelaide Office Market - Knight Frank

Adelaide Office Market - Knight Frank
RESEARCH
Adelaide Office Market - Knight Frank
Positive net absorption has been
    driven by new entrants.                      Slowing growth but the                           an additional 100 graduates next year as

    Tenants are migrating from
                                                 outlook remains positive                         the defence projects at Techport ramp
                                                                                                  up.
    secondary to prime office
                                                 Growth in the South Australian economy
    buildings, more particularly to
    new generation prime office
                                                 has softened consistent with national            “Ten Gigabit Adelaide”
    buildings constructed post 2006.             trends as slow income growth and                 good for tenants & investors
                                                 weaker housing market conditions weigh
    Despite the recent negative net              on consumer spending. By contrast,               “Ten Gigabit Adelaide”, a high-speed
    supply, gross supply for Adelaide            government infrastructure spending and           fibre optic data network, has positively
    CBD is projected to be 28,270m²              defence industry construction are                impacted Adelaide CBD sales and
    over the next twelve months.
                                                 supporting growth, while the lower               leasing demand. Agents have reported
    Investor demand remains strong               Australian dollar is providing a boost to        that “Ten Gigabit Adelaide” has attracted
    with Adelaide viewed as an                   exports.                                         interest from investors and helped
    attractive value proposition with                                                             increase the appeal for tenants of
    average prime yields across the              Low cost of capital                              relocating or establishing a presence in
    Eastern Seaboard generally 100-
    200 basis points firmer than
                                                 continues to benefit the                         the Adelaide CBD. Example includes
                                                 property market                                  Technicolour - a global media post-
    those being achieved in South
                                                                                                  production group - who have set up their
    Australia.
                                                 The Reserve Bank of Australia (RBA) has          Australian Headquarters in the Adelaide
                                                 cut the cash rate in both June and July          CBD. This is likely to generate up to 400
                                                 2019 to a historic low of 1.0%. Further          jobs and is expected to inject an
                                                 cuts in interest rates are expected in the       economic benefit of up to $250 million
                                                 near future. Market interest rates have          over the next decade.
                                                 declined significantly over the past year in
                                                 response to more accommodative
                                                 monetary policy and the softer growth
                                                 outlook.
                                                                                                  Employment Growth
                                                                                                  South Australia and Adelaide
                                                                                                  % changes y-o-y basis
                                                 South Australia remains the only State
                                                 with no stamp duty payable on                     2.50%

                                                 commercial property. The low cash rate                                          Forecast

                                                 coupled with the abolition of stamp duty          2.00%

                                                 will continue to attract investment into the
                                                 SA property market.                               1.50%




                                                 BAE contribute to SA                              1.00%


                                                 economy
                                                                                                   0.50%

                                                 Investments from the defence industry
                                                 have made a positive impact on                    0.00%
                                                                                                           2016

                                                                                                                   2017

                                                                                                                          2018

                                                                                                                                  2019

                                                                                                                                            2020

                                                                                                                                                   2021

                                                                                                                                                           2022

                                                                                                                                                                  2023

                                                                                                                                                                         2024

                                                                                                                                                                                2025

                                                                                                                                                                                       2026




    Research Analyst SA                          employment growth with BAE Systems
                                                                                                                             South Australia              Adelaide
                                                 recently employing more than 80
                                                 graduates, and are expected to employ


Adelaide CBD Office Market Indicators as at July 2019

                                                                                         Average Gross
                          Total Stock   Vacancy       Annual Net       Six Months Net                                Average                               Average Core
Grade                                                                                    Face Rent ($/
                             (m²)*      Rate (%)*   Absorption (m²)^    Supply (m²)“                              Incentive (%)                           Market Yield (%)
                                                                                              m²)

Prime                      594,887        11.6           14,213              N/A                529                       32.2                                       6.62
Secondary                  823,072        13.6           8,005               N/A                383                       33.9                                       8.15
Total                     1,417,959       12.8           22,218            -5,744




2
Adelaide Office Market - Knight Frank
ADELAIDE CBD OFFICE SEPTEMBER 2019                                RESEARCH




     Net Absorption & Outlook               Largest net absorption since
                                            January 2009                                  Adelaide CBD Net Absorption
                                                                                          January 2019 vs July 2019 (6 months to….)
               14,213sqm
 Prime                                      In the six months to July 2019, Adelaide
               12 mths to Jul 19                                                          Precinct                                    January 19                                    July 19
                                            CBD has recorded positive net
               8,005sqm                     absorption of 15,824m². This is 2.6 times     Premium                                         103m²                                      0m²
 Secondary
               12 mths to Jul 19            above the 25-year average, making it the      A Grade                                      2,809m²                              11,301m²
                                            strongest result in Adelaide CBD since
Source: Knight Frank Research/PCA
                                            January 2009, when absorption was             Prime                                        2,912m²                              11,301m²
                                            41,252m².                                     B Grade                                       -714m²                                  6,773m²
New entrants to the
                                                                                          C Grade                                      2,577m²                               -1,756m²
Adelaide CBD market                         Positive net absorption has been driven
                                                                                          D Grade                                      1,619m²                                      -494m²
                                            by tenant expansion and new entrants to
Historically, building owners have relied
                                            Adelaide CBD. Notable examples in             Secondary                                    3,482m²                                  4,523m²
on tenant relocations or renewals,
                                            addition to Beach Energy include Boeing       Totals                                       6,394m²                              15,824m²
however over the past 18 months, we
                                            (new entrant) and BAE Systems
have seen an increase in new entrants to
                                            (suburban to Adelaide CBD).
the Adelaide CBD. A recent new entrant
is Victory Offices—a serviced office
                                            Tenants attracted to new                      Prime Old Gen vs Prime New Gen
business which provides a flexible
                                            generation office buildings                   % of vacancy (core precinct)
workspace has recently established a
presence in Adelaide CBD (11 Waymouth
                                            Much of the city’s tenant demand is            14.0%
Street).
                                            focussed on new generation prime office
                                                                                           12.0%
                                            buildings that were constructed post-
In addition to this, Beach Energy—an oil
                                            2006. Total vacancy for new generation         10.0%
and gas exploration and production
                                            prime office buildings in the core precinct
company has relocated from Conyngham
                                            is approximately 6.8%, whilst older prime       8.0%
Street, Glenside (suburban) to Flinders
                                            office buildings have a vacancy rate of
Street, Adelaide (CBD).                                                                     6.0%
                                            approximately 12.7%.
                                                                                            4.0%
                                            Subdued outlook for net
                                            absorption in secondary                         2.0%

                                            assets                                          0.0%
                                                                                                           Adelaide CBD Prime Old                           Adelaide CBD Prime New
                                                                                                          Generation (Core Precinct)                         Generation - Post 2006
                                            Despite B Grade achieving positive net                                                                              (Core Precinct)
                                            absorption, the short-term outlook for
                                            secondary office in Adelaide CBD looks
                                            subdued. This is mainly due to a number
                                            of tenants who are set to relocate from
                                                                                          Adelaide CBD Net Absorption
                                            secondary office buildings to prime grade     (‘000m²) and % vacancy per 6 month period
                                            office buildings. An example of this is
                                            BHP & SA Attorney General who are both          50                                                                                                         18
                                            relocating from B Grade office buildings                                                                                                                   16
                                                                                            40
                                            to the GPO Exchange Tower on                                                                                                                               14

                                            completion.                                     30                                                                                                         12

                                                                                                                                                                                                       10
                                                                                            20
                                                                                                                                                                                                       8

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                                                                                            10
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                                                                                             0                                                                                                         2

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 Partner
 Head of Office Leasing,
 South Australia                                                                                                    NET ABSORPTION 6 MTHS TO…('000m²) LHS

                                                                                                                    25 YEAR AVERAGE 6 MTHS TO…('000m²) LHS

                                                                                                                    CBD TOTAL VACANCY - RHS (%)




                                                                                                                                                                                                            3
Adelaide Office Market - Knight Frank
Vacancy Rate & Outlook               Developments such as 73-85 Pirie Street                                                                                 Despite the recent drop in the vacancy
                                            (Cbus Property “Planet Nightclub”), 200                                                                                 rate, the short-term outlook for secondary
                11.6%                       North Terrace (Le Cordon Bleu and                                                                                       assets is subdued in Adelaide CBD. The
    Prime                                   Commercial & General) and Festival Plaza                                                                                new supply coming onto the market (GPO
                -240bps y-o-y
                                            (Walker Corporation) would total                                                                                        Tower) will impact the secondary market
                13.6%                       approximately 96,000m² office space if all                                                                              with SA Attorney General & BHP likely to
    Secondary
                -160bps y-o-y               were to proceed. Despite this, Kyren                                                                                    leave significant backfill vacancy.
Source: Knight Frank Research/PCA           Group has commenced building a 14
                                            level office tower at 102-108 Wakefield                                                                                 We understand SA Attorney General has
Low supply and high                         Street without any known tenant pre-                                                                                    a lease tail (c15,000m²) of approximately
withdrawal                                  commitment. The development is                                                                                          2.9 years at 45 Pirie Street before they
                                            expected to be completed in Q3 2020                                                                                     relocate to GPO. PCA measure the
In H1 2019, Adelaide CBD recorded           and will comprise approximately                                                                                         vacancy data based on occupied space
negative net supply of –5,744m², which is   14,880m² of office space.                                                                                               and therefore the lease tail at 45 Pirie
significantly below the 25-year average                                                                                                                             Street will be considered as vacant in
of 12,782m². The negative net supply        The next round of the supply cycle is                                                                                   forthcoming PCA data. On a positive
was mainly attributed to the withdrawal     likely to deliver in 2023, with Department                                                                              note, BHP has increased its tenure from
of 51 Pirie Street (4,650m²) and 124        of Human & Services (DHS) and                                                                                           approximately 6,400m² to 10,000m².
Waymouth Street (2,424m²). Both of          Department of Planning, Transport &
these withdrawals have been driven by a     Infrastructure (DPTI) on the market for
change of use, with 51 Pirie Street to be   circa 15,900m² (DHS) and 24,000m²
redeveloped into a 28 storey hotel and      (DPTI) in 2023. If these requirements were
124 Waymouth Street to be redeveloped       to proceed, additional office supply is                                                                                 Adelaide CBD Vacancy Rates
into a 17 storey student accommodation      likely required.                                                                                                        July 2019 vs July 2020
facility comprising 721 beds.
                                            Vacancy rates continue to                                                                                               Precinct                                     July 18                                  July 19
Gross supply for Adelaide CBD is            drop
projected to be 26,070m² in the six                                                                                                                                 Premium                                               2.8                                      2.6
months to January 2020 and 2,200m² in       The Adelaide CBD vacancy rate has been                                                                                  A Grade                                        14.8                                            12.3
the six months to July 2020, providing a    falling consistently since peaking at the                                                                               Prime                                          14.0                                            11.6
total supply of 28,270m² over the next      end of 2016 at 16.2%, bringing the
                                                                                                                                                                    B Grade                                        14.5                                            12.9
twelve months. The majority of this         vacancy down by 1.4% to 12.8% in the
supply has already been pre-committed.      six months to July 2019. This marks one                                                                                 C Grade                                        15.7                                            14.5
                                            of the largest percentage drops since                                                                                   D Grade                                        16.7                                            13.9
GPO Exchange Tower                          January 2008. The decrease in vacancy
                                                                                                                                                                    Secondary                                      15.3                                            13.6
coming soon                                 was mainly driven by solid net absorption
                                            coupled with the withdrawals of 51 Pirie                                                                                Totals                                         14.7                                            12.8
The main source of supply over the next     Street and 124 Waymouth Street.
six months is the development of Charter
Hall’s GPO Exchange Tower. The              Adelaide Gross Supply Additions                                                                                         Adelaide CBD Vacancy
development will comprise a 20-storey       % total vacancy                                                                                                         % total vacancy
building disposed as ground floor retail,
levels 1 & 2 car parking, levels 3 - 19      50
                                                                                                                                                                     20.0%

                                                                                                                                                                     18.0%
office, and a rooftop plant room spanning    45                                                                                                        Projection

                                                                                                                                                                     16.0%
over 2 levels. On completion, the            40
                                                                                                                                                                     14.0%
property will have an NLA of 24,500m²,       35
                                                                                                                                                                     12.0%
with 87.7% of the NLA pre-committed by       30
                                                                                                                                                                     10.0%
the SA Attorney General’s Department         25
                                                                                                                                                                      8.0%
                                             20
and BHP.                                                                                                                                                              6.0%
                                             15
                                                                                                                                                                      4.0%
                                             10
Future pipeline requires                      5
                                                                                                                                                                      2.0%

further pre-commitments                       0
                                                                                                                                                                      0.0%
                                                                                                                                                                             Jul-09


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The majority of the proposed office                                                                                                                                              PRIME                                                        SECONDARY
                                                                             CBD GROSS SUPPLY 6 MONTHS TO... ('000m²)
developments in Adelaide CBD are still                                       25 YEAR AVERAGE
                                                                                                                                                                                 PRIME 10 YR AVERAGE                                          SECONDARY 10 YR AVERAGE

subject to tenant pre-commitment.




4
Adelaide Office Market - Knight Frank
ADELAIDE CBD OFFICE SEPTEMBER 2019                                           RESEARCH




                                                   12


                                       11                 10




                                                                        5



                       7                           1      8




                                   Adelaide                                                     Adelaide
Riv erbank
 Precinct
                                    Core                       2                                 Frame
 3           4

                                                               9
                                                                                              13




         6




                 74 Pirie Street # - 1,570m²                            200 North Terrace - 26,000m² (office)          76-88 Wright Street - 10,300m² (office)
     1           Maras Group - Q3 2019                             7    4,000m² retail [Le Cordon Bleu]          13    Private - Q2 2022 (Mixed Use - Retail,
                                                                        Commercial & General - H2 2020 - N/A           Commercial, Apartments)
                 GPO Tower, 2-10 Franklin Street -
                                                                        73-85 Pirie Street - 30,000m²                  Under Construction
     2           24,500m² [SA Govt & BHP]
                 Charter Hall - Q3 2019 - 87.7%                    8    Cbus Property
                 (approximately) committed
                                                                                                                       Confirmed
                 Festival Plaza / Riverbank Precinct^ -                 42-56 Franklin Street - 21,000m²
     3           40,000m² (Car Park Only, Office TBC)              9    Kyren Group - 2020+
                                                                                                                       Development Application/ Mooted /
                 Walker Corp / SA Government - 2020
                                                                                                                       Early Feasibility
                 Adelaide Casino, North Terrace                         185 Pirie Street - 6,000m²
     4                                                             10   Palumbo - 2020+                         Source of Map: PCA
                 Local Private Developer - 2020 - 15%
                 committed                                                                                      NB. Dates are Knight Frank Research estimates.
                                                                        150-162 Grenfell Street# - 1,288m²      # Refurbishment
                 102-120 Wakefield Street - 16,500m²               11                                           * Mixed use development comprising retirement
     5                                                                  Kambitsis Group - 2020+
                 Kyren Group - 2020+                                                                            living, respite accommodation, retail and office
                                                                        120 Frome Street - 7,300m²              ^ Festival Plaza is under construction (Car Park-
                 SAHMRI 2, North Terrace - 31,000m²                                                             ing). Office component is subject to pre-
     6                                                             12   Leyton Property - Q1 2021
                 Commercial & General                                                                           commitment.




                                                                                                                                                                    5
Adelaide Office Market - Knight Frank
Rents, Incentives & Outlook
                                                 Decrease in incentives
                                                 reflects improvements in                       Adelaide CBD Gross Effective Rent
                                                                                                Prime vs Secondary ($/m² p.a average )
               $529/sqm face                     effective rental growth
 Prime         2.28% y-o-y
 Rents (g)     $359/sqm eff                      In the six months to July 2019, average          500

               5.84% y-o-y                       prime face rents in Adelaide CBD office          450

                                                 have remained similar at $529/m².                400

               $383/sqm face                     Despite this, average prime incentives           350
 Secondary     1.21% y-o-y                       have contracted from 32.5% to 32.2%,             300
 Rents (g)     $253/sqm eff                      and this has led to some uplift in prime         250
               3.39% y-o-y
                                                 gross effective rents. Over the past             200
                                                 twelve months, average prime CBD gross           150
               P:32.2%
 Incentives                                      effective rents have increased by 5.8%,
               S:33.9%                                                                            100
                                                 from $339/m² to $359/m².                          50

Most leasing activity has                                                                              0




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                                                 The decrease in incentives has been
been for prime office
                                                 driven by an increase in demand for
                                                                                                                                          PRIME                         SECONDARY
Over the past six months, leasing                prime office space as many tenants are
transactions have predominately                  seeking to relocate to prime office assets
occurred in prime office buildings. A            at the end of their lease terms. This
notable example is Aurecon, an                   growth momentum is likely to continue
engineering company that has recently            given the high demand for prime office
                                                                                                Adelaide CBD Prime Incentives vs
committed to expand & relocate from 55           space, particularly new generation office      Gross Effective Rent
Grenfell Street (c1,600m²) to 25 Grenfell        buildings constructed post 2006.               $/m² LHS, % RHS
Street (c2,500m²).
                                                 GPO Exchange Tower sets                         500                                                                                                                     40

Another recent leasing transaction is            new record rents in SA                          450
                                                                                                                                                                                                                         35
Department Veteran Affairs (DVA). DVA                                                            400

has committed to relocate from 199               Although prime office face rents have           350
                                                                                                                                                                                                                         30
                                                                                                 300
Grenfell Street (B Grade) to 91 King             remained static over the past six months,
                                                                                                 250                                                                                                                     25
William Street (Premium).                        the completion of GPO Exchange Tower
                                                                                                 200
                                                 will set a new benchmark in rents with                                                                                                                                  20
                                                                                                 150
Despite the high level of leasing activity       deals stuck at circa $650/m² p.a. gross.
                                                                                                 100
                                                                                                                                                                                                                         15
in prime assets, there have also been            As at July 2019, prime office rents range        50
notable leasing transactions in secondary        from $475/m² p.a. gross to $560/m² p.a.          0                                                                                                                      10
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buildings such as Technicolor, who               gross in Adelaide CBD.
recently occupied approximately 4,000m²                                                                                              PRIME EFFECTIVE RENT - LHS ($/m²)
over three levels at 178 North Terrace (B                                                                                            PRIME INCENTIVE - RHS (%)

Grade) for an initial term of 10 years.


Recent Leasing Activity Adelaide CBD

                                                       Face Rent       Term       Incentive
Address                                     NLA m²                                                                    Tenant                                                            Start Date
                                                         $/m²          (yrs)         (%)`

25 Grenfell Street, Adelaide                2,500*        500g          10            #                               Aurecon                                                       March 2020
91 King William Street, Adelaide            2,100*        535g          7             #       Department Veteran Affairs                                                           January 2020
2-10 Franklin Street, Adelaide              10,000*        #            10            #                                 BHP                                                       October 2019

2-10 Franklin Street, Adelaide              11,500*        #            12            #          SA Attorney General                                                              October 2019

30 Currie Street, Adelaide                   2,616        435g          10            #                       Red Cross                                                          September 2019
178 North Terrace, Adelaide                 4,000*         #            10            #                     Technicolor                                                             March 2019
80 Flinders Street, Adelaide                 3,230        532g          7             #                Beach Energy                                                                     June 2019
80 Flinders Street, Adelaide                 2,654        555g          7             #                                 BAE                                                       November 2018




6
ADELAIDE CBD OFFICE SEPTEMBER 2019                                                                                                 RESEARCH




     Current Yields & Outlook                    A recently settled sale includes 55 Currie                                                                the low cost of capital has further
                                                 Street. The property was transacted for                                                                   attracted investment into the property
                                                 $148.25 million to a Singapore listed                                                                     market.
                6.00% - 7.25%
 Prime                                           property trust, Suntec REIT— ARA
                -59bps y-o-y
                                                 managed, reflecting a core market yield                                                                   Yields compress further
                7.75% - 8.75%                    of 7.39% and a W.A.L.E of 4.21 years
 Secondary
                -25bps y-o-y                     (by income).                                                                                              Yields for prime assets across the
                                                                                                                                                           Adelaide CBD market continue to firm.
Positive outlook for CBD                         High demand from                                                                                          In the six months to July 2019, average

sales above $10 million                          interstate & off-shore                                                                                    Adelaide CBD prime yields edged in by
                                                                                                                                                           14 basis points, from 6.76% to 6.62%
                                                 Demand in Adelaide is predominately                                                                       and secondary yields also firmed by 8
YTD 2019 sale transactions currently
                                                 from interstate and off-shore capital,                                                                    basis points, from 8.23% to 8.15%.
stand at $285.37 million for properties
                                                 more particularly from Singapore. This is
above $10 million in Adelaide CBD. At
                                                 partly due to the attractive value
the current rate, sales volume for
                                                 proposition for investors seeking higher
CY2019 should exceed the ten year
                                                 income returns as average prime yields
average, especially given a number of
                                                 across the Eastern Seaboard are 100-
office buildings in Adelaide CBD are
                                                 200 basis points firmer than South
currently under offer.
                                                 Australia. Furthermore, improving
                                                 leasing market sentiment coupled with
One of the properties currently under
contract is 25 Grenfell Street. The
property was recently contracted by
Singaporean based REIT Soilbuild                 Adelaide CBD Sales $10 million +                                                                         Adelaide CBD vs East Coast Yields
                                                 By Purchaser Type ($m)                                                                                   Prime Core Market Yields
Business Space for $134.22 million
which reflects a core market yield of                                                                                                                       9.0%
                                                 $1,000
circa 6.75% and a W.A.L.E of 4.87 years.          $900
                                                                                                                                                            8.5%

                                                                                                                                                            8.0%
                                                  $800
In addition, 80 Flinders Street is currently      $700
                                                                                                                                                            7.5%

under contract to an interstate property          $600
                                                                                                                                                            7.0%

fund— Centuria for $127 million. The sale         $500
                                                                                                                                                            6.5%

price includes the adjoining multi-level          $400
                                                                                                                                                            6.0%

car park (61-67 Wyatt Street) and reflects        $300
                                                                                                                                                            5.5%

                                                                                                                                                            5.0%
a blended core market yield of 6.11%              $200
                                                                                                                                                            4.5%
and a W.A.L.E of 4.75 years for the office        $100
                                                                                                                                                            4.0%
building.                                           $0
                                                                                                                                                                   Jul-09




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                                                          2009

                                                                 2010

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                                                                                                                                              2019




                                                                        REIT/LISTED FUN D                             DEVEL OPER
                                                                        OFFSH ORE                                     OWNER OC CUPIER
                                                                        PRIVATE IN VESTOR                             UN LISTED/WH OL ESALE                                          SYDNEY                                          BRISBANE
                                                                        10 Yea r Avera ge
                                                                                                                                                                                     MELBOURNE                                       ADELAIDE




Recent Sales Activity Adelaide CBD
                                                Core
                                    Price $                                                      $/m²               WALE                                                                                                                                 Sale
Address                    Grade               Market            NLA m²                                                                               Vendor                                       Purchaser
                                      mil                                                        NLA                 yrs                                                                                                                                 Date
                                               Yield %
80 Flinders Street,                               6.11
                              A      127.00                      12,154                         6,593               3.29                             Lendlease                                           Centuria                                         U/C
Adelaide (incl car park)                       (blended)
25 Grenfell Street,                                                                                                                                                                     Soilbuild Business
                              A      134.22     c6.75            25,039                        5,360                4.87                        Credit Suisse                                                                                             U/C
Adelaide                                                                                                                                                                                      Space
55 Currie Street,
                              A      148.25      7.39            26,200                         5,658               4.21                     AEP Currie Pty Ltd                         Suntec REIT (ARA)                                          Sep-19
Adelaide
121 King William Street,                                                                                                                      Motor Accident                            Charter Hall Direct
                              A      82.25       6.58            12,408                         6,593               3.34                                                                                                                          May-19
Adelaide                                                                                                                                       Commission                                  PFA Fund
99 Gawler Place,
                              B      41.87       7.57            11,157                        3,753                1.9                              Blackstone                                          Fortius                                         Jul-19
Adelaide




                                                                                                                                                                                                                                                                             7
RESEARCH
                                                                                                            Yee Ng
                                                                                                            Research Analyst - SA
                                                                                                            +61 8 8233 5217
                                                                                                            Yee.Ng@sa.knightfrankval.com.au
                                                                                                            Ben Burston
                                                                                                            Partner,
                                                                                                            Chief Economist
                                                                                                            +61 2 9036 6756
                                                                                                            Ben.Burston@au.knightfrank.com

                                                                                                            SOUTH AUSTRALIA
                                                                                                            Oliver Totani
                                                                                                            Director,
                                                                                                            Head of Agency
                                                                                                            +61 8 8233 5210
                                                                                                            Oliver.Totani@au.knightfrank.com
                                                                                                            Bobbette Scott
                                                                                                            Partner,
                                                                                                            Head of South Australia
                                                                                                            +61 8 8233 5211
                                                                                                            Bobbette.Scott@au.knightfrank.com

                                                                                                            CAPITAL MARKETS
                                                                                                            Guy Bennett
                                                                                                            Partner,
                                                                                                            Head of Institutional Sales, VIC & SA
                                                                                                            +61 8 8233 5204
                                                                                                            Guy.Bennett@au.knightfrank.com
                                                                                                            Tony Ricketts
                                                                                                            Director
                                                                                                            +61 8 8233 5259
                                                                                                            Tony.Ricketts@au.knightfrank.com

                                                                                                            OFFICE LEASING
                                                                                                            Martin Potter
                                                                                                            Partner,
                                                                                                            Head of Office Leasing
                                                                                                            +61 8 8233 5208
                                                                                                            Martin.Potter@au.knightfrank.com

Knight Frank Research provides strategic advice, consultancy services and forecasting                       VALUATIONS & ADVISORY
to a wide range of clients worldwide including developers, investors, funding                               James Pledge
organisations, corporate institutions and the public sector. All our clients recognise the                  Partner,
                                                                                                            Head of Valuation & Advisory, SA
need for expert independent advice customised to their specific needs.
                                                                                                            +61 8 8233 5212
                                                                                                            James.Pledge@sa.knightfrankval.com.au
                                                                                                            Nick Bell
                                                                                                            Partner,
                                                                                                            Valuation & Advisory, SA
                                                                                                            +61 8 8233 5242
                                                                                                            Nick.Bell@sa.knightfrankval.com.au




Adelaide Industrial        Sydney CBD Office           Australian Capital          The Wealth Report
Market Overview            Market Overview             View Outlook 2019           2019
August 2019                August 2019

Knight Frank Research Reports are available at KnightFrank.com.au/Research


Important Notice
© Knight Frank Australia Pty Ltd 2019 – This report is published for general information only and not to
be relied upon in any way. Although high standards have been used in the preparation of the
information, analysis, views and projections presented in this report, no responsibility or liability
whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from
any use of, reliance on or reference to the contents of this document. As a general report, this material
does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular
properties or projects. Reproduction of this report in whole or in part is not allowed without prior
written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.
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