Adelaide retail rents to grow by up to 2.8% annually over the next five years

The minimum rental increase is forecast to be 2.0%.

A JLL report forecasts rental growth in Adelaide’s retail market to accelerate, underpinned by existing tenant demand trends. The annual growth rate is expected to average between 2.0% and 2.8% across the regional, sub-regional and neighbourhood sub-sectors over the following five years.

“Further projected cuts in interest rates may improve investment volumes over the short term. However, due to broader global economic uncertainty, investors are likely to still be selective in terms of potential acquisitions,” the report added.

Here’s more from JLL:

No major completions were recorded over the quarter in Adelaide. Only one retail centre completed over the past 12 months, adding 20,700 sqm of retail to stock; below the 10-year annual average of 29,719 sqm.

There are six projects under construction totalling 46,500 sqm, with the latest project expected to be complete by Q3 2026. Additionally, there are four projects with plans approved, totalling 39,400 sqm, and two projects with plans submitted, totalling 10,400 sqm.

Marginal rental growth over the quarter

Average rents across all sub-sectors were broadly stable in Q3 2025. High construction costs persist and retailer demand for space remain broadly resilient.

Yields were unchanged across most sub-sectors apart from the regional and neighbourhood sub-sectors (-13 basis points (bps) and -25 bps, respectively ) over the quarter. Annually, yield tightening was recorded across the regional (-12 bps), sub-regional (-25 bps) and neighbourhood (-25 bps) sub-sectors.