Adelaide CBD’s vacancy rate edged down over the first half of 2025, falling from 16.4% in January to 15.0% in July, the lowest level recorded since 2022. The decline was driven by a drop in prime vacancy, which tightened from 18.1% to 15.1%, while secondary vacancy held steady at 14.9%.
Leasing conditions remained active, with 22,326 sqm of net absorption recorded. This was Adelaide’s third-highest six-month result in 15 years, with demand continuing to focus on higher-quality buildings and modern, well-located workspace.
There was little change to total supply during the period. Only 911 sqm of new stock was added, primarily from the refurbishment of 61 Carrington Street, while 228–230 Pirie Street was withdrawn from the market. These movements offset each other, resulting in no net addition to available space.
50 Franklin Street reached practical completion in mid-2025, delivering around 21,000 square metres to total stock. A significant portion of the building remains unleased and is expected to influence vacancy outcomes in early 2026. Looking ahead, the supply pipeline remains limited. Projects under development include:
Adelaide’s CBD face rents were broadly flat over the first half of 2025. Prime net face rents inched up by 0.2% to $464 sqm, while secondary rents were unchanged at $339sqm.
On an effective basis, prime net effective rents rose 0.4% to $244sqm, reflecting a modest reduction in average incentives from 37.5% to 37.0%. Secondary effective rents were stable at $145 sqm, with incentives increasing from 40.5% to 43.0% as landlords sought to maintain occupancy in buildings.
The widening gap in incentive levels continues to illustrate a two-speed market. Prime assets are showing greater pricing stability, while secondary owners remain under pressure to offer more flexible lease terms to compete for tenants.
Sublease availability in Adelaide’s CBD remains low. As of H1 2025, sublease space totalled around 6,000 sqm, representing 0.4% of total CBD stock. This is down from0.9% in H2 2024, with several listings withdrawn after being converted to direct leases. Adelaide continues to record one of the lowest sublease vacancy rates nationally.
Some of the recent notable commitments shaping Adelaide’s CBD market include:
A wave of consolidation is reshaping tenant behaviour in Adelaide, with more tenants relocating from suburban or fringe offices back into the CBD. While this shift supports physical occupancy strategies, it also reflects a renewed focus on centralised operations and amenity-rich locations. Most tenants are maintaining or modestly increasing their footprint when relocating, and the CBD has captured most of this demand, with net absorption among the highest nationally.
Adelaide’s office market continues to be shaped by a pronounced “flight to quality” trend, as tenants prioritise buildings with superior amenity, sustainability credentials, and long-term occupancy value. In H1 2025, the CBD recorded 22,326 sqm of positive net absorption, with nearly all of it driven by Prime-grade assets, while Secondary recorded a negative net absorption (-357sqm). Prime vacancy fell from 18.1% to 15.1%, reinforcing the concentration of demand in newer and refurbished stock.
Tenant preferences are increasingly focused on ESG alignment and workplace experience. Buildings offering features such as natural light, wellness spaces, high NABERS ratings, and modern end-of-trip facilities are attracting stronger leasing interest. Recent benchmarks show newer, energy-efficient buildings in Adelaide have vacancy rates around 10%, compared to more than 35% in older prime stock. This performance gap highlights the growing value occupiers place on quality, future-proofed space.
As more businesses embed sustainability and flexibility into their property strategies, the demand for premium, well-located space is expected to remain strong. In contrast, secondary-grade landlords may face increasing pressure to reposition or upgrade assets as tenant expectations continue to evolve.
Adelaide’s office investment market remained subdued in H1 2025, with just two CBD transactions over $10 million recorded, totalling $76 million. A continued mismatch in pricing expectations has held back institutional activity, particularly in the secondary-grade segment. Meanwhile, owner-occupier demand remains active, with vacant possession sales still accounting for a high share of overall volumes. This has kept a steady flow of leasing stock exiting the market, particularly in smaller buildings and fringe assets.
Looking ahead, the RBA’s recent rate cuts may begin to ease investor caution. Lower borrowing costs could help narrow the pricing gap and support a gradual recovery in capital values. If investment demand picks up, competition for vacant possession assets may increase, limiting opportunities for businesses to acquire premises outright. For tenants, the current window offers favourable conditions for long-term leasing or purchase strategies. Those looking to secure flexibility, incentives, or owner-occupied space may benefit by acting ahead of a broader market shift.
Tenant CS negotiates exclusively for tenants, securing sharper lease terms, real cost savings and hours back in your day. Put an expert in your corner so you can focus on what you do best.
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Adelaide CBD’s vacancy rate edged down over the first half of 2025, falling from 16.4% in January to 15.0% in July, the lowest level recorded since 2022. The decline was driven by a drop in prime vacancy, which tightened from 18.1% to 15.1%, while secondary vacancy held steady at 14.9%.
Leasing conditions remained active, with 22,326 sqm of net absorption recorded. This was Adelaide’s third-highest six-month result in 15 years, with demand continuing to focus on higher-quality buildings and modern, well-located workspace.
There was little change to total supply during the period. Only 911 sqm of new stock was added, primarily from the refurbishment of 61 Carrington Street, while 228–230 Pirie Street was withdrawn from the market. These movements offset each other, resulting in no net addition to available space.
50 Franklin Street reached practical completion in mid-2025, delivering around 21,000 square metres to total stock. A significant portion of the building remains unleased and is expected to influence vacancy outcomes in early 2026. Looking ahead, the supply pipeline remains limited. Projects under development include:
Adelaide’s CBD face rents were broadly flat over the first half of 2025. Prime net face rents inched up by 0.2% to $464 sqm, while secondary rents were unchanged at $339sqm.
On an effective basis, prime net effective rents rose 0.4% to $244sqm, reflecting a modest reduction in average incentives from 37.5% to 37.0%. Secondary effective rents were stable at $145 sqm, with incentives increasing from 40.5% to 43.0% as landlords sought to maintain occupancy in buildings.
The widening gap in incentive levels continues to illustrate a two-speed market. Prime assets are showing greater pricing stability, while secondary owners remain under pressure to offer more flexible lease terms to compete for tenants.
Sublease availability in Adelaide’s CBD remains low. As of H1 2025, sublease space totalled around 6,000 sqm, representing 0.4% of total CBD stock. This is down from0.9% in H2 2024, with several listings withdrawn after being converted to direct leases. Adelaide continues to record one of the lowest sublease vacancy rates nationally.
Some of the recent notable commitments shaping Adelaide’s CBD market include:
A wave of consolidation is reshaping tenant behaviour in Adelaide, with more tenants relocating from suburban or fringe offices back into the CBD. While this shift supports physical occupancy strategies, it also reflects a renewed focus on centralised operations and amenity-rich locations. Most tenants are maintaining or modestly increasing their footprint when relocating, and the CBD has captured most of this demand, with net absorption among the highest nationally.
Adelaide’s office market continues to be shaped by a pronounced “flight to quality” trend, as tenants prioritise buildings with superior amenity, sustainability credentials, and long-term occupancy value. In H1 2025, the CBD recorded 22,326 sqm of positive net absorption, with nearly all of it driven by Prime-grade assets, while Secondary recorded a negative net absorption (-357sqm). Prime vacancy fell from 18.1% to 15.1%, reinforcing the concentration of demand in newer and refurbished stock.
Tenant preferences are increasingly focused on ESG alignment and workplace experience. Buildings offering features such as natural light, wellness spaces, high NABERS ratings, and modern end-of-trip facilities are attracting stronger leasing interest. Recent benchmarks show newer, energy-efficient buildings in Adelaide have vacancy rates around 10%, compared to more than 35% in older prime stock. This performance gap highlights the growing value occupiers place on quality, future-proofed space.
As more businesses embed sustainability and flexibility into their property strategies, the demand for premium, well-located space is expected to remain strong. In contrast, secondary-grade landlords may face increasing pressure to reposition or upgrade assets as tenant expectations continue to evolve.
Adelaide’s office investment market remained subdued in H1 2025, with just two CBD transactions over $10 million recorded, totalling $76 million. A continued mismatch in pricing expectations has held back institutional activity, particularly in the secondary-grade segment. Meanwhile, owner-occupier demand remains active, with vacant possession sales still accounting for a high share of overall volumes. This has kept a steady flow of leasing stock exiting the market, particularly in smaller buildings and fringe assets.
Looking ahead, the RBA’s recent rate cuts may begin to ease investor caution. Lower borrowing costs could help narrow the pricing gap and support a gradual recovery in capital values. If investment demand picks up, competition for vacant possession assets may increase, limiting opportunities for businesses to acquire premises outright. For tenants, the current window offers favourable conditions for long-term leasing or purchase strategies. Those looking to secure flexibility, incentives, or owner-occupied space may benefit by acting ahead of a broader market shift.
Tenant CS negotiates exclusively for tenants, securing sharper lease terms, real cost savings and hours back in your day. Put an expert in your corner so you can focus on what you do best.
We acknowledge the Traditional Custodians of the lands on which we work. Our offices are located on the land of the Gadigal peoples of the Eora Nation and the Wurundjeri peoples of the Kulin Nation. We acknowledge their continued connection and contribution to land, water and community, and pay our respects to Elders past and present.
We’re proud to be an inclusive workplace, where diversity in all its forms are valued and every member of our team is encouraged to bring their whole self to work.
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