Adelaide industrial pipeline set to add over 110,000 sqm of space

The latest project is expected to deliver in Q4 2026.

Adelaide’s industrial property market is poised for continued rental growth in 2026, supported by a tight supply pipeline and steady occupier demand, according to a report by JLL. With limited new buildings expected in the short term, the consultancy anticipates that prime rents will remain under upward pressure, while prime yields are likely to stay stable.

JLL highlighted that low stock levels and competition for new developments are key drivers sustaining rental growth across the market. The firm noted that enquiries from prospective tenants have moderated slightly due to a shortage of suitable existing space and ongoing negotiations over rents, but underlying demand, particularly from the manufacturing and defence sectors, is expected to support market activity in the near term.

In 2025, Adelaide’s industrial sector recorded gross take-up of 47,000 sqm in the fourth quarter, slightly below the preceding quarter but still well above the average quarterly volume of approximately 25,500 sqm seen over the past two years.

JLL observed that several major deals underpinned this activity, including a notable 14,134 sqm lease at 6 Senna Road, Wingfield, in the North West precinct, representing the largest transaction of the quarter. Overall, five significant occupier moves exceeding 3,000 sqm were recorded, demonstrating sustained interest in premium industrial space.

Supply deliveries to the market slowed in the fourth quarter, with just 14,800 sqm completed. JLL reported that nine major projects are currently under construction, totaling 114,700 sqm, with pre-commitments at 31.6 percent, and the earliest expected delivery in Q4 2026. In addition, the future supply pipeline includes seven projects with approved plans totaling around 99,000 sqm and five projects with plans submitted amounting to 33,900 sqm. The constrained pipeline reinforces the market’s supply-demand imbalance, supporting continued rental growth in prime precincts.

Prime net face rents increased across four key precincts in Q4 2025, including the Inner South, Inner West/East, North East, and Outer South. According to JLL, these gains reflect a continuing trend of occupier demand outpacing available supply. Average land values for 2,000 sqm lots also recorded annual increases of between 10 and 30 percent, although values were largely unchanged quarter-on-quarter.

Looking ahead, JLL anticipates that rental growth will remain a defining feature of the Adelaide industrial market in the short term, bolstered by limited supply and robust competition for newly delivered buildings. The consultancy expects occupier demand, particularly from sectors such as manufacturing and defence, to continue driving leasing activity, while prime yields are projected to remain stable.

Overall, JLL concludes that Adelaide’s industrial market is well-positioned to sustain momentum through 2026, with strong demand, low vacancy, and constrained new supply supporting rental growth and investor confidence.