News release

Boutique Adelaide CBD office building sells for $14.2 million

Local syndicate seals biggest CBD office deal in Adelaide for 12 months

April 29, 2024

Ben Parkinson

+ 61 407 710 389

Jack O’Leary

+61 430 963 960

JLL South Australia announced today that it had sold and settled a CBD office building at 104 Frome Street to a local private syndicate for $14.2 million reflecting an initial yield of 6.88%.

JLL Head of Capital Markets - South Australia, Ben Parkinson said the property, sold on behalf of a local private investor, was the largest Adelaide CBD office transaction that has settled for more than 12 months.

“The sales campaign resulted in more than 100 enquiries, reflecting a renewed interest in the Adelaide office market and the strong economic performance of South Australia,” he said.

Mr Parkinson said the price point was attractive for a range of groups, including private investors, local and interstate syndicates and owner-occupiers, as it represented strong value considering the current construction costs.

“Increased construction costs and increased interest rates have impacted development feasibilities and therefore good quality existing stock, at these pricing levels, provide an attractive purchasing opportunity,” he said.

104 Frome Street is a five-level office building providing modern floorplates that have been substantially renovated. The property is close to the amenities of Rundle Street, Hutt Street and the eastern Adelaide Parklands.

The building offers 4387 sqm of office (NLA) with 53 on-site car parks on a 1693 sqm site providing a passing income of $977,177* with a 1.86* year WALE.

JLL Director, Capital Markets - South Australia Jack O’Leary said that over the past 12 months the CBD office market has experienced a scarcity of transactions but a shift in market sentiment is currently being observed.

“Investors now possess a greater level of clarity and confidence regarding both interest rates and the stability of the office market. As a result, we anticipate a resurgence in transaction volumes throughout 2024,” Mr O’Leary said.

He said South Australia has a “robust” local private investor market, which has helped underpin the office sector during market downturns by seeking countercyclical buying opportunities.

Mr O’Leary said a recent trend in the CBD market has been occupier centralisation from suburban office locations. This trend is expected to continue driving net absorption in the CBD.

“Additionally, demand for well-located prime buildings is likely to persist over the medium-term as amenity is a key driver to attract workers into the office while driving efficiencies to achieve net zero targets,” he said.

JLL Research found occupier demand in the Adelaide CBD rebounded in Q1 2024, with quarterly net absorption recorded at 10,965 sqm. The prime grade net absorption figure (13,993 sqm) drove higher headline net absorption this quarter (Q1 2024), with secondary grade net absorption recorded at -3,028 sqm. This positive net absorption figure was driven largely by centralisation and expansionary activity by occupiers in the public administration & safety and administrative & support services sectors.

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit