http://www.news.com.au/adelaidenow/stor ... 82,00.html
Tower project to get kick-start
October 20, 2009 12:01am
..A NEW 30,000sq m office tower - similar in area to Westpac House - could be built in Adelaide before 2012 on the back of a government leasing requirement.
The Federal Government, through services group United, has announced it is seeking 30,000sq m of office space by 2014, with the first half needed by October 2012.
The move means at least one of the dormant development projects in the CBD is likely to get off the ground.
Property Council of Australia SA executive director Nathan Paine said it was good news for commercial construction in the city.
"This is positive for commercial development in the CBD," he said.
"There are a range of sites with development approvals for buildings of that size, so what it will mean is there will be cranes back on the horizon in Adelaide."
A spokeswoman for the Australian Tax Office confirmed the ATO was the prospective tenant and was at the stage of "assessing the market". She said the new building would be required to meet green building standards of four-and-a-half stars.
At least six developments are awaiting pre-commitment in Adelaide, including Aspen Group's City Central Tower 8, the Tritan Corporation and Moritz Group site on Franklin St, and the Kambitsis Group site on Wakefield St.
"I have absolutely no doubt that there will be a lot of competition for this development," Mr Paine said.
Colliers International director of leasing Jon Cranna said the market currently could not cater for 30,000sq m of space.
"They wouldn't fit in a current building," he said.
To complete the building by the third quarter of 2012, construction would need to start by late next year, he said. "They will really have to get their skates on."
Jones Lang LaSalle SA managing director John McBeath said the new building could precipitate rental growth in the rest of the market.