The shifting heart
of the Adelaide
New office builds swing from the east to west of King William Street, according to JLL
ADELAIDE, March 30, 2020 – Between 1990 to 2009, more than 60% of new office stock was developed on the eastern side of King William Street. However, throughout the past decade this trend has been reversed, with now more than 55% of new supply developed on the western side of the CBD, according to JLL Research.
The main business district was predominantly established along the east end of King William Street, particularly along Grenfell, Pirie and Flinders Streets which is where the University of Adelaide, the Rundle Mall retail strip and the old Royal Adelaide Hospital are located.
Now we look to a new wave of buildings that are emerging on the western side of the CBD, particularly along Franklin Street.
JLL’s Research Director (SA) – Rick Warner said, “The introduction of smaller bar licenses in 2013 was the catalyst for the rejuvenation of Adelaide’s most successful laneways (Peel and Leigh Streets). Those once underutilised laneways, located on the western side of the city, are now the centrepoint of an established hospitality laneway network, improving the social amenity for people working in this area.”
“The incremental expansion of the University of South Australia City West Campus has increased the number of students in the western precinct, spurring student accommodation development.”
“The most critical factor supporting the western CBD growth was the relocation of the Royal Adelaide Hospital from the eastern edge of North Terrace to the western edge of North Terrace in 2017. The relocation of the hospital shifted approximately 6,000 workers, 400,000 annual outpatients and approximately 85,000 annual inpatients to the west end of the city.”
In the 4Q19, JLL Research found 60% of prime office developments in the Adelaide CBD pipeline will be located west of King William Street.
“Developers, who recognised this momentum shift early, have now acquired development sites along Franklin, Currie and Waymouth Streets. As a result, the proportion of modern office stock located on the western side of King William Street will increase further as we move into the 2020’s,” Mr Warner Concluded.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.