Significant changes to Adelaide’s “The North-South Corridor” from Torrens to Darlington project that involves the construction of a new 10.5-kilometre motorway and tunnel sections connecting the Torrens to Torrens (T2T) section in the north and the Darlington Upgrade Project in the south are having significant ramifications on the city’s commercial property markets.
According to David Ente, Director of Raine & Horne Commercial SA, the T2T project involves the government acquiring lots of commercial property on South Road and side streets for the tunnel. “This is pushing up demand for commercial properties either side of the project back towards the CBD as well further out into the suburbs.
“The tunnel comes out at different spots and the government has reclaimed inner suburban properties to facilitate these exit and entry points. They are taking a lot of properties to make this happen and this is displacing a lot of businesses.
“Most businesses want to try and stay close to where they are operating now but this isn’t always possible. In turn this creates commercial property demand elsewhere.”
The Torrens to Darlington project is also expected to bring many benefits, particularly in the long term. By reducing congestion and improving travel times, the project will make it easier for customers to access businesses located along the new routes. This could lead to increased foot traffic and revenue for small businesses in the area.
David says despite the changing market conditions caused by the tunnels yields on commercial assets remain mostly unchanged from 2022. Yields range from 3-5% for retail and industrial space to 4-6% for office property. “Industrial property continues to be the strongest market after enjoying strong growth over the last 18 months,” David added.
The team at Commercial SA have also enjoyed significant successes this year, with Commercial Sales & Leasing Specialist Daniel Romeo recognised recently as the national network’s Top National Commercial Agent Number of Leasing Transactions. Raine & Horne Commercial SA is the leading real estate network’s fastest growing office for dollar value in South Australia.
For all your commercial property sales and leasing needs in Adelaide, call Raine & Horne Commercial South Australia on 08 8172 1266.
Image Sourced: https://infrastructuremagazine.com.au/2022/12/15/design-changes-made-to-torrens-to-darlington-project/