Adelaide industrial rental growth to accelerate over the short term

Blame it on a supply shortage and increasing competition.

Industrial occupier demand in Adelaide is anticipated to sustain in the short term according to a JLL report, despite broader global economic uncertainty. However, speculative supply from developers is likely to be low as construction material and labour costs remain elevated.

“Due to low supply, competition from new builds, and a major infrastructure project which has displaced many businesses, rental growth is expected to accelerate over the short term. Prime yields are expected to be unchanged throughout 2025,” the report added.

Here’s more from JLL:

Occupier demand decreased over the quarter, with gross take-up totalling 32,300 sqm. This figure is also below the average quarterly gross take-up of approximately 37,000 sqm, recorded over the past two years.

Four major occupier moves (>3,000 sqm) were recorded over Q2 2025, with the largest move being an 11,500 sqm deal for an undisclosed occupier at 122-132 Purling Avenue, Edinburgh, in the Outer North precinct.

Uplift in supply delivered to market over the quarter

There was around 93,200 sqm of new supply added to total stock in Q2 2025. Currently, there are seven major developments under construction totalling 89,300 sqm, with the latest project expected to deliver in Q1 2026. The pre-commitment rate for these projects is 40.8%.

There are eight projects with plans approved in the future supply pipeline, totalling to around 110,900 sqm. Additionally, there is one project with plans submitted, totalling 5,000 sqm.

Marginal quarter-on-quarter rental growth

Average prime net face rents increased across two precincts in Q2 2025, with quarterly growth recorded at 1.3% (Outer South) and 3.3% (Outer North). The rise in asking rents is a result of the continuing trend with occupier demand outpacing supply.

Average land values increased across all precincts in Q2 2025 as availability of serviced development sites remains limited in the market. On an annual basis, average land values for 2,000 sqm lots increased between 17.9% and 45.5%.