Adelaide CBD office vacancy rate falls to 14.6% in Q1

Net absorption reached 24,800sqm during the quarter.

JLL says the Adelaide CBD office market recorded a decline in vacancy during Q1 2026 despite softer leasing activity compared with the previous quarter.

According to JLL, net absorption totalled 4,500 sqm during the quarter, down from 13,300 sqm in Q4 2025. On a rolling annual basis, net absorption in the CBD reached 24,800 sqm, while the headline vacancy rate fell by 0.3 percentage points to 14.6%.

The consultancy said no major office developments were completed during the quarter. Adelaide’s current supply pipeline includes one project under construction totalling 21,700 sqm and three approved projects with a combined 101,000 sqm of future supply.

JLL highlighted Market Square, developed by ICD Property on Grote Street, as the only project currently under construction. The office tower forms part of a broader mixed-use residential and retail precinct, is 58.5% pre-committed and is scheduled for completion in Q3 2026.

Prime office rents continued to strengthen during the quarter, with average prime net face rents increasing 2.7% quarter-on-quarter to AUD510 per sqm per annum, representing annual growth of 3.4%. Average prime net effective rents rose 3.3% over the quarter to AUD195 per sqm per annum, up 2.2% year-on-year.

Average prime midpoint yields remained unchanged at 7.75% on both a quarterly and annual basis. JLL noted that while a gap remains between buyer and vendor pricing expectations, the spread has narrowed over the past 12 months.

Looking ahead, JLL expects near-term demand to remain positive as several large businesses continue expanding and centralising operations within the Adelaide CBD. However, the agency forecasts net absorption to moderate from the strong levels recorded over the past three years.

The consultancy also expects prime office yields to remain stable in the short term, with investors likely to stay selective on acquisitions amid ongoing global economic uncertainty.