Office tower at 26 Flinders Street in Adelaide’s CBD up for sale

The prominent 16-level office tower, which has ground floor retail with office accommodation on the floors above, is expected to be sought after by investors with sentiment in the Adelaide market on the rise on the back of strong occupier fundamentals.

26 Flinders Street is offered to the market via an Expressions of Interest campaign run by Max Frohlich and Ryan Mills of Knight Frank and Ian Thomas and Alistair Laycock of CBRE, on behalf of the vendor, Corval.

The building, which has unobstructed views of Victoria Square and the Adelaide CBD skyline, is 91% occupied by a mix of high-profile tenants including Aussie Broadband, Angas Securities, JCDecaux, Samsung Electronics, Stillwell Management Consultants, Employers Mutual and Sealink.

It has 10,217sq m of net lettable area over 16 levels with 68 basement carparks – a ratio of 1:150 sqm, a significant point of difference with competing office space. The building occupies a 1,645sqm site, with a rear plaza offering further development potential.

CorVal completed a comprehensive circa $10.7 million refurbishment program on the asset in 2025, including all mechanical upgrades, lifts, bathrooms, lobby upgrades and new ground floor end-of-trip facilities.

Knight Frank’s Max Frohlich said: “Situated in the core of Adelaide’s CBD, 26 Flinders offers the ideal combination of secure income supported by strong leasing performance, a high-profile tenant base and reversionary upside, together with meaningful development potential at an attractive yield.

“The investment thesis for 26 Flinders Street is also backed by strong leasing fundamentals in the Adelaide office market. Adelaide is entering a period of historically low new supply, with additions between 2025 and 2027 falling to a thirty-year low of just 0.9% of total CBD stock in 2025, before rising again with the next wave of completions expected in 2028.

“The latest wave of newly delivered assets has also set the new benchmark for economic rents, widening the rent spread between premium new stock and existing buildings and reinforcing the case for further rental uplift. With economic rents sitting well above forecast levels, the development pipeline has thinned materially as groups delay commencement until conditions normalise.

“Further supporting the outlook is the withdrawal of outdated stock for adaptive reuse with several buildings mooted for conversions from office to hotel, student accommodation and/or residential, which will materially reduce secondary supply, boost net absorption and maintain downward pressure on vacancy rates. With vacancy trending lower and high-quality refurbished and new generation assets capturing the bulk of tenant demand, conditions point to continued rental growth through 2025.

“With this backdrop, 26 Flinders Street is ideally positioned to benefit from the next phase of rental growth and tightening market conditions.”

CBRE’s Ian Thomas said: “26 Flinders Street sits in one of the most tightly held and strategically important precincts of the Adelaide CBD, surrounded by major government, defence, finance and resources occupiers. This positioning, coupled with excellent public transport connectivity, underpins its long-term leasing strength.

“The asset offers investors genuine income diversity, with 24 tenants and staggered lease expiries that minimise vacancy risk. Notably, 38% of the tenancies are held by listed companies and the balance leased to well-established national organisations - a testament to the building’s appeal to high-calibre occupiers.

“In a market where demand for well located, high-quality office space remains strong, 26 Flinders Street stands out for its occupancy profile, its resilience and the future value drivers embedded within the asset.”

The Expressions of Interest campaign for the property will close at 3pm (ACDT) on Wednesday, March 18.