Adelaide retail rental growth to average between 2.0% and 2.7% annually

This forecast is for the next five years.

Retail rental growth is forecast to accelerate in Adelaide according to a JLL report, underpinned by existing tenant demand trends. The annual growth rate is expected to average between 2.0% and 2.7% across the regional, sub-regional and neighbourhood sub-sectors over the following five years.

“Investors are likely to still be selective in terms of potential acquisitions, albeit to a lesser extent than 12 months ago. Nevertheless, further projected cuts in interest rates may improve investment volumes over the short term,” the report said.

Here’s more from JLL:

SA retail spending continues to trend upwards over Q2 2025, increasing 3.0% year-on-year in May 2025 versus 2.4% in February 2025. The strongest year-on-year spending growth was recorded in the recreational goods category (7.4% year-on-year).

Despite leasing activity slowing over the quarter, national fashion operators continued to secure space in regional centres. In the Adelaide CBD, service operators and food and beverage retailers remain active, securing new high profile retail space.

One major completion in the Adelaide market

One major completion was recorded over the quarter in Adelaide, totalling 20,686 sqm. Over the past 12 months, three retail centres have completed, adding 34,800 sqm of retail to stock; above the 10-year annual average of 29,700 sqm.

There is around 27,200 sqm of retail space currently under construction, with the latest project expected to be completed by Q3 2026. Additionally, there are five projects with plans approved, totalling 53,200 sqm, and one project with plans submitted, totalling 6,598 sqm.

Marginal rental growth over the quarter

Average rents across most sub-sectors were broadly stable in Q2 2025. High construction costs persist and retailer demand for space remain broadly resilient.

Yields were unchanged across all sub-sectors over the quarter. On an annual basis, the regional sub-sector tightened 12 basis points (bps), and the sub-regional sub-sector tightened 25 bps.