High-profile Adelaide CBD office tower on the market

One of Adelaide’s most prominent high-rise office towers has been listed for sale by a locally-based private investor.

33 King William Street comprises an office tower of 19 levels, including high-profile retail on the ground floor, a mezzanine, and 17 upper levels, which have undergone various upgrades over the current ownership period. 

CBRE’s Ian Thomas and Alistair Laycock and Cushman & Wakefield’s Guy Bennett and Jed Harley have been appointed to manage the sale.  

The 10,950sqm building is currently 86% leased to tenants across multiple industries including law, banking, software, and travel with food and retail outlets occupying the ground floor.

The largest tenants, each occupying one floor, are Adelaide Festival Corporation (605sqm), Frontier Software (599.2sqm), DFP Recruitment (573sqm), and Carlson Wagonlit (577sqm) with the balance occupied by some of Adelaide’s well-known SMEs.

The office tower is one of Adelaide's spec suite strategy market leaders, with over a third of the building providing speculatively fitted-out office suites – catering to the fact that over 70% of the city’s current tenant demand is for office space of under 300sqm.

“The multi-tenanted make-up of 33 King William Street mitigates expiry risk for the future owner and the building also offers a strong cash flow, with the potential for income and value upside via leasing the vacant space and capturing rental growth,” Mr Thomas said.

Mr Thomas said that at a time when there has been some uncertainty with interest rates, 33 King William Street offers buyers an attractive yield for an asset located in the absolute core of the CBD.

“Over the past three years, there has been a strong net absorption in the building, capitalising on the city’s strong leasing enquiry post COVID, and Adelaide’s nation-leading occupancy figures.” Mr Bennett said.

“Over the past three years, nearly a third of the building has been fitted out with spec suites with the owner struggling to meet demand as they were built.  More recently, several suites have been leased to second and also third generation tenants,”