Adelaide CBD Office Figures Q2 2024

Key Points: 

• The Adelaide CBD continued to see steady demand for office space over Q2 2024, with leasing enquiries higher than those seen in 2020.
• The Adelaide CBD overall vacancy rate as of H1 2024 reached 17.5% as per the most recent PCA data. The vacancy rate within newer prime Gen3 assets sat at 9.8% this quarter, owing to the recent completion of 150 Grenfell Street.
• Prime gross rental rates ended Q2 2024 at 627 AUD/sqm. This represented a quarter-on-quarter increase of 2.0%. Prime incentives decreased slightly by 30 bps to 34.9% as of this quarter.
• Office sales volume totalled AUD 52 million in Q2 2024. Investment activity remains subdued due to the significant gap between buyer and vendor pricing expectations.
• Average prime office yields softened slightly to 7.49%, with secondary yields softening to 9.45%. These values represented quarter-on-quarter increases of +4 bps and +2 bps respectively.