Adelaide CBD Office Figures Q4 2023

February 2, 2024 7 Minute Read

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  • The Adelaide CBD continued to see steady demand for office space over 2023. Full-year enquiry levels in 2023 outpaced 2022 and the market has now seen leasing enquiries increase every year since 2020.
  • The Adelaide CBD overall vacancy rate ended January 2023 at 19.3% as per the most recent PCA data. CBRE Research suggests the vacancy rate within newer prime Gen3 assets sat at 4.6% as of Q4 2023, much lower than the overall figure.
  • Prime gross rental rates ended Q4 2023 at 600 AUD/sqm. This represented a quarter-over-quarter increase of 2.5%.  Prime incentives increased slightly by 10 bps to 35.2% as of this quarter.
  • Office sales volume totalled AUD 46 million in Q4 2023. Investment markets have remained on pause due to recent interest rate hikes and market uncertainty.
  • Average prime office yields softened to 7.39%, while secondary yields softened to 9.19%. These values represented quarter-over-quarter increases of 25bps across both categories.