Podcast
THE PROPERTY DEVELOPMENT REVIEW
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL 23 MINUTES
JACK O’LEARY
With Rob Langton
DIRECTOR - CAPITAL MARKETS JLL
boom in Adelaide’s CBD has led to a surplus of available space, especially in aging A-grade buildings. While occupiers are transitioning to new spaces, the reabsorption of prime office space will take time. Nevertheless, these developments are setting higher rental standards, thereby positively impacting the prime office market. Recent valuation losses, as exemplified by announcements like DEXUS’s, have acted as a market reset, shaping future expectations nationwide. Despite these challenges, there are opportunities for proactive individuals and businesses. Repurposing and upgrading older assets, focusing on specialised suites and tenant amenities, emerge as key strategies. Conversations about converting these assets into residential spaces are ongoing; however, Jack advocates for making these spaces attractive for businesses. Encouraging migration from suburbs to the CBD could be a viable approach, aligning with the city’s ongoing transformation. In this ever-shifting landscape, adaptability and a keen understanding of tenant needs emerge as crucial elements for success. Those who can navigate these complexities and proactively address market demands are well-positioned to thrive in Adelaide’s evolving real estate scene.
In his multifaceted role at JLL, Jack finds himself immersed in the dynamic and diverse real estate landscape of Adelaide. The city, once rooted in industrial manufacturing, is undergoing a significant transformation, evolving into a vibrant hub of various industries. From development sites and retail spaces to substantial investments, Jack’s work spans across this bustling urban panorama. One of the remarkable aspects of Adelaide’s transformation is its shift from industrial manufacturing to a centre for diverse industries. High-tech manufacturing at places like Tonsley, along with growth in sectors including defence, aerospace, health, food, and wine sectors, exemplifies this transformation. The emergence of innovation hubs like “Lot Fourteen,” repurposed from the old Royal Adelaide Hospital, showcases the city’s progress. Furthermore, Adelaide has gained international recognition in the education sector, offering exciting opportunities and contributing to the city’s growth. Built-to-rent opportunities are gaining momentum in Adelaide, overcoming historical challenges posed by affordable rental prices. Recent changes in rental trends have made these ventures more feasible, indicating a shifting market dynamic. Adelaide’s property market possesses unique attributes, such as active engagement from local private buyers, providing stability even in economic uncertainties. The removal of stamp duty in 2018 has enhanced the city’s appeal for investors, reducing transaction costs and boosting confidence in the business community. However, challenges persist in the current economic landscape. Discrepancies between buyer and vendor expectations, influenced by outdated metrics and differing long-term strategies, present hurdles. The development
October / November 2023 – 13
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