Adelaide CBD Office Figures Q1 2025

Key Points:

• Office enquiry volumes in Q1 2025 totalled c.66,500 sqm, down by 5% y-o-y. Q1 Enquiry volumes remain 16% above the historic average and occupier sentiment remains healthy.
• The Adelaide CBD overall vacancy rate as of H2 2024 decreased to 16.4% from 17.5% in H1 2024, driven primarily by the strong net absorption of 22,606 sqm.
• Prime gross rental rates ended Q1 2025 at an average of $643 per sqm, increasing by 1.8% q-o-q  and 4.5% y-o-y. Prime incentive rates remained stable q-o-q averaging 35.5%.
• Adelaide’s CBD net supply was muted in H2 2024 with 6,659 sqm of net supply due to refurbishment of 150 Grenfell Street. The supply of 50 Franklin Street (c.21,000 sqm) is expected to come to market this half year.  
• Muted transaction volumes recorded in Q1 2025 however, an improved interest rate outlook and healthy sales pipeline is expected to lift volumes in 2025.
• Both prime and secondary grade office yields remained stable q-o-q at an average of 7.70% and 9.48%, respectively.