By Zoe Lynch

As businesses rethink how and where they work, the office market in Adelaide CBD is seeing a consolidation phase that's reshaping tenant preferences and precinct dynamics.

While King William Street has long been the jewel of Adelaide's CBD, thanks to its iconic status, transport links and amenity, a noticeable shift is underway. Pirie Street is fast becoming a vibrant commercial hub, driven by significant upgrades and new developments.

Buildings like 30 Pirie Street, 45 Pirie Street, and the newly developed 83 Pirie Street are leading the charge, offering modern amenities that appeal to forward-thinking businesses. From lobby cafés and gyms to golf simulators and collaboration zones, the precinct is attracting tenants who value experience as much as location.

This uplift is benefiting not just premium assets, but also B and C grade buildings, whose occupiers now enjoy the amenity spillover from nearby refurbishments and new builds.

Across Adelaide, there's a clear shift in tenant expectations. Businesses are no longer just looking for space, they're seeking environments that support hybrid working, collaboration, and employee wellbeing.

Landlords are responding with upgraded offerings including, shared meeting rooms, breakout zones, hospitality-style concierge services, and food and beverage options are becoming standard in competitive assets.

The flight to experience is evident across all grades, with sustainability credentials, service quality, and fitout excellence playing a central role in leasing decisions.

Amenity is now a key factor in relocation decisions, particularly as businesses aim to bring teams back into the office. With many employees still working less than 50% from the office, companies are investing in spaces that foster engagement and reflect their culture.

While cost remains a consideration, especially for government and NGO tenants, the broader market is prioritising value over price. Tenants are willing to pay a premium for spaces that offer a superior experience, though public perception and budget constraints still influence decisions in certain sectors.

Adelaide's market shows strong location loyalty. Tenants in areas like Greenhill Road or the outer CBD frame tend to stay put, often renewing leases multiple times. These precincts offer convenience, particularly around parking, which remains a top priority for many businesses.

While core CBD assets may offer stronger amenity, the disruption of relocating, especially for staff, often outweighs the benefits. As a result, well-located secondary assets continue to perform steadily, supported by tenant familiarity and practical considerations.

Proximity to public transport, retail, and lifestyle offerings is increasingly influencing tenant preferences. Buildings that offer easy commutes and access to cafés, shops, and wellness services are outperforming in terms of demand and retention.

The workplace is now an extension of more than just company culture, and location remains an factor in shaping that experience.