Gross take-up decreased significantly over Q1 2026

• Occupier demand slowed over the quarter, with gross take-up totalling 30,900 sq.m. This figure is also below the average quarterly gross take-up of 46,500 sq.m., recorded over the past two years.
• Three major occupier moves (>3,000 sq.m.) were recorded over Q1 2026, with the largest being a 20,500 sq.m. deal for Marnco in the North precinct.

Supply delivered to market increased over the quarter

• New supply delivered increased in Q1 2026, totalling 26,700 sq.m. Currently, there are 11 major developments under construction totalling 115,500 sq.m., with the latest project expected to deliver in Q1 2027.
• The pre-commitment rate for these projects is currently 21.7%. There are seven projects with plans approved in the future supply pipeline, totalling 99,000 sq.m. Additionally, there are four projects with plans submitted, totalling 19,200 sq.m.

Rental growth recorded across all precincts

• Average prime net face rents increased across all four precincts in Q1 2026, ranging from 3.0% in the Inner precinct to 4.7% in the Outer South precinct. The rise in asking rents is a result of the continuing trend with occupier demand outpacing supply.
• Average land values increased in the Inner precinct in Q1 2026, while the remaining precincts were stable. On an annual basis, average land values for 2,000 sq.m. lots increased between 6.7% and 20.0%.

Outlook: Prime yields expected to be unchanged over the short term

• Anecdotally, enquiry levels have slowed due to the lack of existing suitable stock and resistance between owners and tenants in terms of rents. Nevertheless, occupier demand is likely to be supported by the manufacturing and defence sectors going forward.
• Competition for new buildings and low existing supply is expected to continue supporting rental growth in the Adelaide market over the short term. Additionally, prime yields are expected to be unchanged over the same period.