City occupancy rates increase: More companies choosing to call the CBD home

City office occupancy rates have increased in the past 12 months, with new data revealing the highest leasing of commercial floor space since the Global Financial Crisis.

According to Adelaide Economic Development Agency Data, more than 50,000sq m of commercial has been leased in the city over the past year.

It comes as industry experts at a Property Council of Australia (SA) event said the demand for high-quality commercial space with at least a 5.0-Star NABERS rating remained strong.

Event speaker and AEDA Economic Research Advisor Jordon Tomopoulos said the economic outlook for the city remained positive.

“There has been over 50,000sqm of commercial floor space leased in the past 12 months, that’s amazing—it is something we haven’t seen since the GFC and dot-com boom before that,” Mr Tomopoulos said.

“While I acknowledge that a lot of these are big deals that you have probably heard or read about, it is quite astonishing and a very good sign of how things are going in the city.”

In Short:

• Adelaide's economic outlook looks positive, with new data showing an increase in office occupancy in the CBD
• More companies want to move into city building with premium amenities
• Jordon Tomopoulos' presentation at the Property Council Australia (SA) South Australian Office Market Report event here

New Property Council of Australia data showed Adelaide’s CBD office vacancy rate fell from 17.5 per cent in July 2024 to 16.4 per cent in January 2025.

Net demand in Adelaide grew by 1.4 percent, surpassing the 0.4 per cent increase in supply growth.

Mr Tomopoulos said there had been an increase in the number of businesses choosing to establish themselves in the CBD over the past year.

“We have recently got some fresh data on the number of businesses in the city and there were 150 more businesses in 2024 than there were in 2023,” Mr Tomopoulos said.

“We’ve seen the biggest growth in industries such as wholesale trade, social and healthcare. Consequently, the city’s workforce has been growing at a higher rate than the rest of the state.”

Companies moving into the city are looking for A Grade, or premium stock, with good amenities to attract the best workers.

More office space is also being renovated and refurbished to be more attractive to potential tenants.

Over the next six months there is approximately 23,826sq m of commercial space set to come online in the CBD, according to the Property Council of Australia.

Speaking as part of a panel at the Property Council of Australian (SA) event, AGL Head of Property John Berkis recently moved into the city after spending 20 years on the city fringe.

He said the city, particularly, 100 King William Street, had a real sense of community.

"One of the first things is belonging, and everything else comes afterwards,” Mr Berkis said.

CBRE Director Alexandra Mcgee said what surrounds the building is just as important as what is inside, with more companies wanting “their staff to be surrounded by amenity”.

“By that, I mean they want to be able to get an exceptional coffee shop either on site or a one-minute walk from the building, they want lunch options and the ESG (Environmental, Social, and Governance) is also becoming really critical.”

For further information, you can see Jordon Tomopoulos' presentation here.

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