Overview
LPC has been helping our clients in South Australia since our inception in 1994.
Unlike other commercial real estate firms, LPC does not represent developers or investors. We provide advice to office, retail and industrial occupiers and are 100% committed to only helping tenants and owner-occupiers. This creates a unique advantage and ensures we are free of any conflict of interest.
Office
Adelaide’s CBD office market recorded its strongest performance in over a decade during the second half of 2024. The overall vacancy rate fell from 19.3% to 16.4%, driven by a net absorption of 22,604 sqm and limited new supply of just 6,659 sqm.
Vacancy rates improved across both market segments, with prime-grade space at 18.1% and secondary-grade at 14.9%. Average prime gross rents in the CBD reached $635 per sqm, reflecting modest quarterly growth of 0.4% and a 5.2% increase year-on-year.
The recovery has been supported by stable tenant demand and restrained supply, pointing to a more balanced and resilient office market heading into 2025.
Industrial
Adelaide’s industrial property market saw steady growth through the end of 2024, with an increase leasing activity. Much of the sublease space that came onto the market in 2024 has now been absorbed, pointing to stable demand from occupiers. While new developments expected in 2025 may increase vacancy rates, potential interest rate cuts in the first half of the year could support stronger business investment and drive demand from logistics, warehousing, and manufacturing users.
Incentives continue to play a central role in lease negotiations, offering value to tenants but keeping effective rental growth subdued.
Retail
Adelaide’s retail property market remained stable in late 2024, with consistent consumer spending and moderate growth across most sectors. Retail sales in South Australia rose by 2.2% year-on-year in December, led by strong performance in the recreational goods category.
Around 12,000 sqm of new retail space was delivered during the quarter, largely in large format retail centres. The Adelaide CBD retail market showed signs of strengthening, with tightening vacancy rates—Adelaide Arcade, for example, recorded a vacancy rate of just 3.8%.
While leasing demand from national fashion retailers remained subdued, most retail segments saw a decline in vacancies and steady income growth. Seasonal sales events and population growth contributed to the overall resilience of the sector.
