Adelaide retail completions surpass 10-year average

Three retail centres added 38,700sqm of new space over the past 12 months.

South Australia's rising household spending helped underpin Adelaide's retail market in Q1 2026, with service providers and food and beverage operators continuing to drive leasing demand, according to JLL.

Household spending in the state increased 5.0% year-on-year in February, up from 4.7% in November, with health-related expenditure recording the strongest growth.

Two major retail projects totalling 18,000 sqm were completed during the quarter. Over the past 12 months, three centres have added 38,700 sqm of retail space, exceeding the 10-year annual average of 26,500 sqm.

JLL said nine projects totalling 63,900 sqm remain under construction and are scheduled for completion by late 2027, while a further five approved projects could add another 32,600 sqm.

Average rents increased modestly across all retail sub-sectors during the quarter, while yields remained unchanged. On an annual basis, yields tightened in both regional and neighbourhood retail markets.

JLL expects rental growth to accelerate as tenant demand remains resilient, although investment activity may moderate in the near term as investors remain cautious amid economic uncertainty and interest rate risks.