As the way we work has changed since the pandemic, so has the function of our office spaces. Supported by research from the University of Sydney’s Institute of Transport and Logistics Studies, the average working Australian now spends 27% of their working hours at home.
Alongside significant residential accommodation shortages, these emerging trends have led many to consider how office space can adapt to serve more people more of the time. Likewise, savvy investors are exploring how this shift presents a fascinating opportunity.
The state of Adelaide’s CBD office market
As the South Australian economy grows, so does its skyline. Yet with more than half of the CBD’s buildings built more than 40 years ago, bringing these structures up to modern standards is crucial to attract tenants. In particular, businesses are looking for office space featuring top-quality amenities, such as end-of-trip facilities and flexible spaces, rather than rigid floor plans.
Meanwhile, as building costs remain high, adapting office space for a contemporary workforce or even residential properties presents a viable alternative to a full-scale rebuilding project. What’s certain is that the nature of CBDs is changing around the globe, and redesigning traditional office space into flexible, multi-purpose structures could prove a highly lucrative venture.
Factors for investors to consider
Ready to get involved? Here are a few critical factors to consider when exploring the possibility of investing in adaptable office space.
Precinct potential: Office spaces shouldn’t just be somewhere to work. Experts have identified how workers prefer working in ‘precinct’ setups, with access to high-quality food and amenities. When searching for office space, consider the long-term development potential and how this might help you attract tenants.
Redevelopment suitability: Not every office space is primed for redevelopment. According to a recent audit of Melbourne CBD by Hassell, they identified 86 buildings suited for adaptive reuse. Some structures will be too costly to refit; others will be limited by zoning regulations. Keep these factors in mind when investigating your options.
The future of work: The way we work has transformed over the last few years, but the way forward is far from settled. The most recent findings show that offices in Adelaide remain at a healthy 85% capacity on average. However, larger capital cities have seen a much larger drop from pre-pandemic occupancy levels.
Speak to the experts
Get in touch with the experts at InStyle Property Management to get up-to-date information about the commercial office property market. Our highly experienced team can help you manage your investments to achieve your goals.