Adelaide to see at least four new office projects over the next year

One project spanning 21,700sqm is already under construction.

According to a JLL report, in Adelaide’s office market, 50 Franklin Street completed over the quarter, totalling 21,000 sqm. There is currently one project under construction in the supply pipeline, totalling 21,700 sqm, and three projects with plans approved, totalling 86,300 sqm.

“The project under construction is Market Square – a 21,700 sqm office tower developed as part of a broader mixed-use residential and retail development by ICD Property on Grote Street. The building is 58.5% pre-committed and expected to complete in Q3 2026,” the report added.

Here’s more from JLL:

Net absorption totalled 3,500 sqm in Q3 2025, marginally down from the previous quarter’s reading of 3,600 sqm. On a rolling annual basis, net absorption in the Adelaide CBD is 18,100 sqm.

The headline vacancy rate increased 0.9 percentage points (pps) to 15.7% over the quarter. The prime grade vacancy rate also increased 2.3 pps to 14.8%, driven by a predominantly unleased, speculatively built 21,000 sqm office asset which completed in the quarter.

Yields were unchanged on a quarterly and annual basis

Average prime net face rents increased 0.7% over the quarter to AUD 496 per sqm p.a. and reflected year-on-year growth of 2.1%. Average prime net effective rents increased 0.5% to AUD 189 per sqm p.a., with year-on-year growth declining 1.3%.

Average prime midpoint yields were stable at 7.75% over the quarter. There remains a spread between buyer and vendor expectations, but this gap has narrowed over the past 12 months. Average prime midpoint yields were also stable on an annual basis.

Outlook: Near-term occupier demand expected to be subdued, but positive

Demand levels in the near term are expected to be supported by some large businesses expanding and centralising to the Adelaide CBD. However, anecdotally, occupier space requirements are currently being maintained.

Due to broader global economic uncertainty, investors are likely to remain selective in terms of potential acquisitions. Prime office yields have reached the end of the softening cycle and are forecast to be stable for the remainder of the year.