Quarterly gross take-up down over Q1 2025

• Occupier demand decreased over the quarter, with gross take-up totalling 42,000 sqm. Nevertheless, this figure is above the average quarterly gross take-up of 39,900 sqm recorded over the last 10 years.
• Six large occupier moves (>3,000 sqm) were recorded over Q1 2025, with the largest move being a 10,309 sqm deal for BAE Systems at 47-53 Woomera Avenue, Edinburgh, in the Outer North precinct.

Supply delivered to market inches upwards quarter-on-quarter

• There was 24,000 sqm of new supply added to Adelaide total stock in Q1 2025. Currently, there are 12 major developments under construction totalling 145,400 sqm, with the latest project expected to deliver in Q1 2026. The pre-commitment rate for these projects is 67.3%.
• There are six projects with plans approved in the future supply pipeline, totalling 93,300 sqm. Additionally, there are two projects with plans submitted, totalling 34,000 sqm.

Strong rental growth across all precincts in Adelaide

• Average prime net face rents increased across all precincts in Q1 2025, with quarterly growth ranging from 6.7% to 11.1%. The rise in asking rents is a result of the continuing trend of occupier demand outpacing supply.
• Average land values increased across most precincts in Q1 2025 as supply for development sites remain limited in the market. On an annual basis, average land values for 2,000 sqm lots increased between 7.1% and 36.4%.

Outlook: Near term rental growth supported by supply shortage

• Speculative supply from developers is likely to remain low as construction material and labour costs remain elevated, while occupier demand is anticipated to remain robust as the broader national economic environment stabilises.
• Rental growth is expected to accelerate over the short term due to low supply, competition from new builds, and a major infrastructure project which has displaced many businesses. Prime yields are expected to hold steady over the rest of 2025.