2026-03-27-莱坊-Adelaide_Office_Market_Report_March_2026_9页_1mb

Adelaide CBD Office Market Summary (March 2026)

Core Content

Adelaide's CBD office market has shown resilience and strong performance in 2025, despite broader economic challenges. The market is characterized by sustained tenant demand, robust rental growth, and a shift in supply dynamics that have influenced vacancy rates.

Key Market Indicators

• Total Market Vacancy Rate: Increased by 0.5% to 15.5% over H2-2025.
• Prime Vacancy Rate: Rose by 1.4% to 16.5% due to the completion of 50 Franklin Street (21k sqm), which is approximately 80% vacant.
• Secondary Vacancy Rate: Declined by 0.3% to 14.6%, reflecting strong net absorption and limited new supply.
• Annual Net Absorption: Reached 33k sqm in 2025, second only to Brisbane nationally, with 91% concentrated in the CBD Core.
• Annual Face Rental Growth: Prime rents increased by 7.3% to $723/sqm, while secondary rents rose by 4.2% to $480/sqm.
• Prime Office Yield: Rose by 8 bps to 7.26%, while secondary yields increased by 10 bps to 8.22%.
• Supply Additions (2025): 25k sqm, primarily from the completion of 50 Franklin Street.
• Investment Volumes (2025): Totalled $195m, with 68% of transactions in the CBD Core and 32% in the Frame.

Strong Demand Trends

• Over the past 24 months, the market has recorded 85k sqm of positive net absorption.
• The flight-to-quality trend is evident, with 97 sqm of net absorption in secondary space, compared to 33k sqm in prime space.
• Major occupiers have committed to new leases, including:
  • RAA at 150 Grenfell Street (9k sqm)
  • Elders at 80 Grenfell Street (3.183k sqm)
  • Flight Centre at 11 Waymouth Street (1.117k sqm)

Supply Outlook

• New supply is expected to remain low over the next two years, with only Market Square (22k sqm) scheduled for completion in 2026.
• In 2028, two significant developments are set to complete:
  • Festival Tower II (50k sqm)
  • Lot 14 (17k sqm)
• These additions are forecast to average 18k sqm per annum over the next five years, which should help reduce vacancy rates.

Fringe Market Performance

• The Adelaide Fringe office market has emerged as a quiet achiever, with strong rental growth and net absorption.
• Prime Gross Face Rents: Increased by 3.9% to $528/sqm.
• Secondary Gross Face Rents: Rose by 7.3% to $427/sqm.
• Net Absorption (2025): Reached +4,600 sqm, the highest since 2011, with 8.6% vacancy rate, down 2.2% from the previous year.
• Vacancy Distribution:
  • Prime: 8.6%
  • Secondary: 10.2%
  • Sublease Availability: 0.4%

Economic and Investment Outlook

• Investment Activity: Subdued over the past three years, with only 11 sales above $6m in 2025.
• GDP Growth Forecast: National GDP growth is expected to slow, which may affect office demand in the coming years.
• Adelaide's Resilience: The market is less exposed to global economic conditions compared to Sydney and Perth.
• Expected Investment Recovery: National investment volumes are anticipated to rise in 2026, supported by a growing number of distressed assets.

Summary of Key Points

• Resilience: Adelaide's CBD office market remains one of the most resilient in Australia, with strong tenant demand and rental growth.
• Vacancy Trends: While total vacancy increased slightly to 15.5%, the CBD Core is seeing a higher rate of vacancy due to new supply, while the Fringe maintains low vacancy.
• Supply Dynamics: The completion of 50 Franklin Street and the upcoming Festival Tower II and Lot 14 will shape future market conditions.
• Investment Activity: Although subdued, investment volumes are expected to rise in 2026, with Prime yields starting to firm, indicating improved market fundamentals.
• Affordability: Adelaide remains the most affordable CBD office market in Australia, with net face rents $572/sqm, significantly lower than $756/sqm in Melbourne.

Major Developments and Transactions

• Recent Sales:
  • 77 Grenfell Street: Sold for $45.7m in February 2026.
  • 75 Hindmarsh Square: Sold for $42.4m in February 2026.
  • 63 Pirie Street: Sold for $50.5m in July 2025.
• New Leases:
  • RAA at 150 Grenfell Street (9k sqm)
  • Elders at 80 Grenfell Street (3.183k sqm)
  • Flight Centre at 11 Waymouth Street (1.117k sqm)

Contact Information

• Research & Consulting:
  • Laurence Panozzo: +61401251876 | Laurence.Panozzo@au.knightfrank.com
  • Ben Burston: +61452661682 | Ben.Burston@au.knightfrank.com
  • Tony McGough: +61406928820 | Tony.McGough@au.knightfrank.com
• Institutional Sales, SA:
  • Max Frohlich: +61882335267 | Max.Frohlich@au.knightfrank.com
  • Ryan Mills: +61882335215 | Ryan.Mills@au.knightfrank.com
• Office Leasing, SA:
  • Martin Potter: +618 8233 5208 | Martin.Potter@au.knightfrank.com
  • Rory Dyus: +61882335261 | Rory.Dyus@au.knightfrank.com

Conclusion

Adelaide's CBD office market continues to outperform many other Australian cities, driven by strong demand, particularly for prime-grade assets. While new supply has contributed to a slight increase in vacancy, the market's fundamentals remain robust, and the Fringe area has shown promising growth. The market is well-positioned to weather future economic challenges, with a focus on quality and affordability.