Nearly 27,000sqm of retail space currently under construction in Adelaide

And three other project plans have recently been approved.

Over the past 12 months, nine retail centres completed in Adelaide, adding 47,765 sqm of retail to stock. According to JLL data, out of the total stock brought to market, four new neighbourhood shopping centres completed, adding 16,569 sqm of consumer staples-oriented retail to stock.

“There is 26,686 sqm of retail space currently under construction, with the largest project being an extension to Burnside Village. In addition to projects already under construction, there are three projects with plans approved, totalling 23,865 sqm.”

Here’s more from JLL:

SA retail spending continues to trend downwards, recording growth at 2.8% y-o-y in May 2024 versus 4.2% in February 2024. Spending at cafes, restaurants and takeaway services remained relatively strong, with growth of 6.0% y-o-y.

National fashion retailers continue to secure new high profile retail space in the Adelaide CBD. Hospitality groups remain active, especially in the Western and Northern suburbs.

Rents and yields broadly stable in Q2 2024

Average rents across most sub-sectors were broadly stable, with minor growth in the large format retail sub-sector. Retailer demand for space remains resilient, especially in the suburban areas.

Yields across all sub-sectors were unchanged over the quarter. On an annual basis, most yields across the sub-sectors were stable, except for the CBD and regional sub-sectors which have softened 25 basis points (bps) and 100 bps, respectively.

Outlook: Yields expected to soften further in the short term

Yields are expected to continue softening for the remainder of 2024, with midpoint yields for all sub-sectors forecast to soften another 12 to 25 bps.

Despite consumer sentiment moderating nationally due to heightened cost-of-living pressures, rents are forecast to continue increasing over the short to medium term, especially in the regional sub-sector.