Adelaide businesses still enjoying fringe benefits
Adelaide’s city fringe office market continues to strengthen in the face of economic and property market uncertainty, experts say.
Broadway Property managing director Ben Heritage said the increase of flexible work arrangements, CBD accessibility and the need for stability are core contributors to the growing popularity of Greenhill Road and Fullarton Rd commercial properties.
“While there has been a clear trend for businesses looking to return to the Adelaide CBD, we’ve also seen increasing interest in the city fringe from both new tenants looking to move into the precinct and existing tenants planning to stay put,” Mr Heritage said.
“The recent move of Greenhill Civil Engineers from Hindmarsh Square to Fullarton Road is certainly a sign of things to come.
“Businesses see value in the main road exposure and signage opportunities, easy parking and access to the CBD for meetings.
“In the wake of the pandemic more employees are working between home and the office, and the fringe offers much greater flexibility and lifestyle.
“We have recently finalised two lease renewals in the fringe office market, so there’s also the fact that in times of uncertainty clients are choosing to stick with what they know.”
Mr Heritage said the city fringe is also bringing much needed cost savings for tenants.
“In two recent lease renewals we secured significant cost savings, representing a reduction of 21 percent and 30 percent over their renewed lease terms, as property owners make moves to retain quality tenants,” he said.
“Broadly speaking, tenants are getting more value on the city fringe compared with similar spaces in the city.”
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