- The development was announced in 2021, with topping out in 2022
- It is circa 80% leased to blue-chip tenants
- Demand for smaller offices on the rise
In late 2021, Centuria announced the $40 million development of an A-grade boutique office building in Adelaide’s CBD.
At the time of the announcement, the development had pre-leasing commitments from international engineering firm Wallbridge Gilbert Aztec (WGA), national property and construction firm, Hindmarsh, and a national architectural firm, which totalled 55% of the building’s Net Lettable Area (NLA).
The site was then an underdeveloped on-grade car park and redundant two-storey building, which adjoins the Centuria-managed 80 Flinders Street office building and car park.
In late 2022, Centuria announced the six-storey, 4,600 square metre office development had topped out.
Adelaide’s newest office building opens
Centuria Office REIT (ASX: COF) has now opened the $40 million development along 57 Wyatt Street, with circa 80% of the property leased to blue-chip tenants including Hindmarsh, Cox, WGA, Zurich, and Australian Public Affairs (APA).
According to CBRE, approximately 70% of Adelaide office leasing enquiries are for space of circa 500 sqm but the lion’s share of the city’s available floorplates range between 800 sqm – 1,000 sqm.
“In this post-pandemic environment, we had a unique opportunity to provide the local market with office accommodation that is most in demand and it seems our 670 sqm floorplates have hit the mark,” said COF Fund Manager and Centuria Head of Office, Grant Nichols.
“More importantly, we listened to occupier’s needs in regard to attracting and retaining workers back into office accommodation, to facilitate productivity and collaboration. While table-tennis, hammocks and slides between floors are fun, they aren’t conducive to productivity.”
“We took into consideration what people like about working from home – access to fresh air, quiet spaces, being able to sit in the sunshine or eating alfresco during the lunch hour. We believe these are the simple measures that can facilitate an efficient and effective worker.”
The $40 million office building features include retractable glass facades panels, providing rare fresh air into the workspaces, a rooftop BBQ entertaining terrace with pergola gardens providing a city skyline vista, bike storage, personal lockers, and hotel-style end of trip facilities.
The property was acquired and developed by Centuria Capital Group’s in-house development arm, headed by Andre Bali.
“The Wyatt Street address is a fantastic, central location providing walkable access to retail, restaurants and other commercial premises,” said Bali.
“Previously, it was a modest on-grade car park that contributed little to the wider fabric of the surrounding business and hospitality neighbourhood.”
“It was a simple decision to add value to the site with this boutique office development, which is sympathetically designed to reflect the surrounding heritage architecture. We are very excited to welcome our tenant customers to their new work home.”
Across the Centuria Group, the real estate funds manager has a six-asset South Australia A-Grade office portfolio worth $641 million and a current 99.6% portfolio occupancy. The Wyatt Street site adjoins the Group’s 80 Flinders Street office building and carpark and is in close proximity to 25 Grenfell Street and 80 Grenfell Street.
