Cbus Property Reveals Plans for “Future-Looking” $300 Million Office Skyscraper in Adelaide

The developer scored approval in early 2018 to redevelop the well-known nightclub - which had been disused for 14 years - for a commercial project.

The 17-storey office skyscraper, 83 Pirie, will yield about 30,000 sqm of A-grade office space in an area dubbed as the new Central Lifestyle District of the South Australian capital.

The building on the corner of Pirie Street and Freemasons Lane will have average floorplates of about 1750 sqm. To encourage collaborative working, floorplates can be merged to create vertical workplace hubs.

The development will feature end-of-trip facilities, as well as a wellness centre. Image: Supplied

Property experts have predicted that markets outside of Sydney and Melbourne will attract the attention of counter-cyclical investors this year.

Cbus Property Chief Executive Officer Adrian Pozzo says there is a shortage of new, contiguous, A-Grade commercial workspace in central Adelaide.

“This demand is driven by positive employment rates and sustained spending across defence, renewable energy and technology sectors, including the implementation of the 10 Gigabyte Adelaide initiative, which indicates demand will only increase,” he said.

Mr Pozzo said the changing workplace has transformed tenant requirements.

“Tenants are not only looking for innovative workspaces that offer flexibility and foster a collaborative and engaging work environment but also leading design incorporating innovative technology, sustainability and wellness initiatives which is exactly what 83 Pirie will deliver,” he said.

A changing workplace means better amenity offerings in new office developments. Image: Supplied

Designed by Woods Bagot, the development will include a 300 sqm landscaped rooftop terrace, an onsite wellness centre and a 365 sqm retail area on the ground floor as well as end-of-trip facilities.

Only 2.3 percent of the Adelaide CBD’s premium office space is vacant and 83 Pirie will add to the pipeline. Image: Supplied

The tower will target a GOLD WELL Rating. Other sustainability features will include electric car charging stations and drought-resistant landscaping on the rooftop terrace.

Andrew Beasley, Colliers International’s national director of office leasing, who is leasing the building, said tenant demand is strong, with only two new buildings to be completed this year.

Construction of the development will commence once a pre-commitment is secured and is expected to take about two years.

The 83 Pirie project  is not the only commercial development underway in Adelaide.

The Kyren group began construction on a 14-level office tower this week at 102-108 Wakefield Street - tapping into demand for prime-grade office space that is projected to escalate in coming years.

The building will provide about 14,000 sqm of prime-grade office space when it is completed in 2020.

Savills Office Leasing’s Adam Hartley and Zandra McGee will be handling the building’s leasing campaign, which is expected to attract tenants from legal, medical, engineering and technology sectors.

The building will be leasing at about $470 net per sqm.

“High quality contiguous office accommodation is becoming harder to find off the back of many recent leasing transactions that have absorbed the majority of prime-grade office space,” Mr Hartley said.

The latest Property Council of Australia data shows Adelaide’s vacancy has been steadily dropping, with 14.2 percent of the city centre’s office space empty, down by 0.5 percentage points in the six months to January 2019.

Vacancy for premium space in the CBD is significantly lower at 2.6 percent.

Floorplates at 83 Pirie can be merged to create vertical workplace communities. Image: Supplied

Cover Image: A new $300 million commercial skyscraper is set to land in Adelaide’s CBD. (Image: Supplied)