Life is suite: Adelaide’s office tenants seek the full fit-out

ADELAIDE, 2 August 2022 – More than half the Adelaide office tenants looking for new premises this year want a contemporary existing fit-out, JLL’s analysis has found.

Of the 60 formal tenant briefs released across the entire South Australian market in the first half of 2022, analysed by JLL, 53% of briefs specified a fully fitted suite that required no further upgrades. Just 13% wanted clear space, and another 22% were happy to consider either.

A solid 60% wanted a compact office; space under 1000 square metres was the top choice. And of tenants in this market sector, 61% asked for a good fit-out.

The briefs analysed included those received by managing agents other than JLL. They encompassed total space requirements of 66,945 square metres.

Government, IT and health care are the most active seekers, followed by professional business services, education and the not-for-profit sector. 

JLL Leasing Executive – South Australia, Catherine Ward said, “We’re seeing very strong demand for high-quality premises in the sub-1000 square metre category, and the majority of these tenants – 61% -- require or prefer an existing fit-out.

“Only 6% want a completely vacant space in which to design something very specific to their brand,” Ms Ward said.

“For commercial landlords hoping to attract long-term tenants into these smaller offices, a bright, simple, contemporary fit-out with provision for Covid-style hygiene will be worth the investment, especially in the CBD.”

JLL’s Head of Office Leasing – South Australia, Tom Budarick said, “Adelaide is a small tenant market, and for these tenants being able to access time and capital for fit-outs is challenging.

“Being able to provide a one-stop solution with a smartly-fitted suite makes the leasing process easier for occupiers,” Mr Budarick said.

An example of a fitted-suite lease brokered by JLL this year is that for the Australian Energy Market Operator (AEMO), now comfortably in 200 square metres in the Grenfell Centre. Located at 25 Grenfell Street, Adelaide, the tower known as the Black Stump is a central hub for legal, financial, government and energy services.