Adelaide CBD Office Figures Q4 2024

Key Points:

• Office enquiry volumes in Q4 2024 totalled c.65,000 sqm, up 2% y-o-y. Total enquiries by number in Q4 2024 was down 29% y-o-y. Net absorption remained very strong in H2 2024 with 22,606 sqm recorded in the Adelaide CBD.
• 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 figure.
• Prime gross rental rates ended Q4 2024 at an average of $631 per sqm, increasing by 0.4% q-o-q  and 5.2% y-o-y.
• Adelaide’s CBD net supply was muted in H2 2024 with 6,659 sqm of net supply recorded. Supply of 9,485 from refurbishment of 150 Grenfell Street was slightly offset by 2,826 sqm of secondary grade stock withdrawals.
• Transaction volumes dropped by 36% in 2024 across Adelaide, as the subdued activity continued. Total volumes reached just $209 million for the year.
• Average prime office yields softened by 7 bps q-o-q to 7.70%, while secondary grade yields softened by 3 bps q-o-q to 9.48%.