ASIA PACIFIC OUTLOOK 2025

ADELAIDE

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

The Market Square development, coupled with the ongoing demand for quality office spaces

Limited new supply is expected in the Adelaide CBD market in 2025, following the completion of just 10,000 sqm in 2024. A larger addition of 55,000 sqm is projected for 2027, but most projects are in early stages and could face delays due to high construction costs and low market demand.

Demand in the Adelaide CBD has been cyclical in recent years, with notable fluctuations.

Prime gross effective rents rose by over 10% in 2023, primarily due to a sharp increase in face rents.

and limited new supply, is expected to support office

growth in Adelaide CBD. As the flight-to-quality trend continues, secondary-grade and older prime-grade buildings may present opportunities for upgrades and redevelopment.

Prime net absorption rebounded to 23,700 sqm in 2023 and is expected to continue at 22,000 sqm in 2024.

Growth is expected to slow to 5% in 2025, as limited new supply restricts further quality-driven increases in face rents.

Over the next five years, demand is projected to remain modest, with net absorption ranging from 13,000 sqm to 19,000 sqm.

The Adelaide office market’s fundamentals remain modest, with gross effective rent growth projected to average above 2.5% annually from 2026 to 2028.

Beyond 2027, the timing of future projects remains uncertain.

Vacancy rates are also anticipated to stay steady, between 17% and 21%, due to limited new supply.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025