[U/C] 42-56 Franklin Street | ~78m | 17lvls | Office

[Ben]

Big gamble. Aside from Services Australia, who else is a big name tenant looking for more space in the CBD?

A few I can think of are

Westpac/Bank SA
Viva Energy relocating HO to Adelaide. Around 9000 positions.
SA govt put out a tender recently for around 20,000sqm

[AG]

Big gamble. Aside from Services Australia, who else is a big name tenant looking for more space in the CBD?

SA Health would likely be one of the biggest potential tenants looking around.

[Patrick_27]

Same story with their Wakefield Street building, went in without a tenant and still only has one signed up a couple of years after completion (Comm Bank).

I know that Westpac are looking for a new premises so they could end up taking up a few floors here…

[gnrc_louis]

Could someone with access please post the actual article, cheers: https://www.adelaidenow.com.au/subscrib ... our=append

[Nathan]

Adelaide developer Kyren Group is forging ahead with another speculative office development in the city, pushing aside concerns about rising vacancy rates and the uncertainty surrounding the future of hybrid work.

Construction has commenced on the $100m tower at 50 Franklin St, next to the PwC building which Kyren completed in 2014.

It will offer more than 21,000sq m of lettable space across 17 floors when it’s completed in late 2024.

Kyren Group, led by managing director Theo Samaras, has a long history of speculative development in Adelaide, with previous projects at 108 Wakefield St, 400 King William St and 70 Franklin St all commencing with little or no pre-commitment from tenants.

The developer was also behind construction of Adelaide’s tallest building - the Crowne Plaza hotel and Adelaidean apartments tower on Frome St - in 2020.

While much of 108 Wakefield St, his most recent office project in the city, remains unoccupied, Mr Samaras remains bullish about the city’s prospects as it continues to emerge from the challenges posed by Covid-19.

“Kyren Group have been a great supporter of South Australia, with multiple developments over the past 30 years,” he said.

“The 50 Franklin St development is another $100m project that will support South Australian businesses and workers.”

Cushman & Wakefield’s Adam Hartley is managing the leasing campaign, with talks under way with prospective tenants.

According to the latest Property Council figures, the CBD office vacancy rate in Adelaide reached 16.1 per cent in January - its highest level since July 2017.

And that figure’s expected to rise by the end of 2023 as new developments including Charter Hall’s 60 King William St project and Walker Corporation’s Festival Plaza towerare completed.

However with the current wave of office building activity nearing an end, Mr Hartley said that by the time it’s completed, the Franklin St tower would be one of few options for tenants seeking newly built accommodation.

Designed by Brown Falconer, the A-grade office building’s end-of-trip facilities include more than 170 bike parks, showers, lockers and “hotel-style” change-rooms, and tenants will also have access to the adjacent 700-bay Auto Park car park.

A “premium mid-rise” floor will provide a large outdoor terrace for corporate functions and meetings, while a retail tenancy will be offered on the ground floor.

Mr Hartley said a strong focus on sustainability had been incorporated into the design, which is targeting a 6 star NABERS rating through measures including all-electric mechanical plant, and solar and regenerative energy technologies.

He said it was all part of a push to attract companies looking for modern amenities and sustainable, high-quality spaces for their employees.

“Businesses are looking for buildings that provide economic office space that will attract new talent and retain experienced employees,” he said.

“They require a space that is inviting and attractive to staff that will want to return to the office to collaborate and build their individual company culture.”

[SRW]

Good luck to them. I don't love the design, but it's magnitudes better than an open lot/carpark. I hope something is soon proposed for the old Truscotts across the road. It would be a total makeover for this part of city vs 10 years ago.

[Ben]

I also have reservations about this design. With the one they also built next door it’s a massive wall of glass with no setbacks or an interesting design. Also at similar height to the building next door it’s going to look pretty uninteresting.

[dbl96]

It would be a total makeover for this part of city vs 10 years ago.

Especially considering a major redevelopment of the vacant car park area around the bus depot is also on the cards: https://www.adelaidenow.com.au/subscrib ... our=append

[gnrc_louis]

It would be a total makeover for this part of city vs 10 years ago.

Especially considering a major redevelopment of the vacant car park area around the bus depot is also on the cards: https://www.adelaidenow.com.au/subscrib ... our=append

Plus the possible travel lodge hotel on Bentham and CLT one on Vic Square

[ml69]

Big gamble. Aside from Services Australia, who else is a big name tenant looking for more space in the CBD?

A few I can think of are

Westpac/Bank SA
Viva Energy relocating HO to Adelaide. Around 9000 positions.
SA govt put out a tender recently for around 20,000sqm

Viva Energy do not have 9000 positions. Where did you get this info from? Their website says they have 700 employees. My guess is that most of these would be operational roles at their Geelong refinery and oil import terminals.
Corporate HO type roles will not amount to a huge number of people …. perhaps 100-200 people.

[Ben]

I did read somewhere 9,000 of the 13,000 positions would be in Adelaide but can't find it. Obviously a lot are store workers but they will still need a large office presence assuming they no longer develop their Norwood property.

From the Advertiser:

Mr Shahin described the deal as more a "merger than a sale", and said that, if it is approved, the Shahin family would be one of the biggest shareholders in Viva and that he would stay on to help run it.

"We have 7,000 staff, Viva have got 6,000 and it's the right thing for the business," he said.

"A condition of the deal from day one was that Viva agree to keep the business headquartered in Adelaide and they've actually done one better — they've agreed to make Adelaide the headquarters of the entire national Coles Express/OTR retail business, so that's a 13,000-person organisation."

[Patrick_27]

Between the Truscott’s site and the old Bus Terminal, there is a real opportunity for residential growth in this area, perhaps with a continuation of China Town between Grote and Franklin Street(s). I can’t understand why there are massive plans for the Market precinct and yet, we have developers buying up land in other pockets of the city already occupied by local heritage or parkland, rather than building up these areas that are decaying with neglect.

[Nort]

Between the Truscott’s site and the old Bus Terminal, there is a real opportunity for residential growth in this area, perhaps with a continuation of China Town between Grote and Franklin Street(s). I can’t understand why there are massive plans for the Market precinct and yet, we have developers buying up land in other pockets of the city already occupied by local heritage or parkland, rather than building up these areas that are decaying with neglect.

Sites ripe for development are priced accordingly.

Whereas you can get parklands through shady deals, or buy a heritage site cheaply because it doesn't seem to have development potential and then neglect it until oh no sadly there's no option but to build on it.

[Prodical]

This is a busy site now

[Norman]

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