The ‘slow and steady’ growth economy of South Australia is somewhat misleading, with the state recording higher state final demand growth per capital than other Australian states over the past twenty years. The next two decades could see a similar outcome given the economic activity that will be generated by defence manufacturing and technology research, development and investment. Defence spending - along with investment in emerging medical precincts, renewable energy and the Australian Space Agency - could stop the brain drain from South Australia that has intensified over recent years, and we expect this will underpin stronger white collar employment growth and tenant demand in the Adelaide office market.