City Pulse Check: Main Street Occupancy Report Q3 2023

Last updated 08 Dec, 2023

The Main Street Occupancy Report Q3 2023 offers intriguing insights into the activity in the heart of Adelaide.

New data analysed by the Adelaide Economic Development Agency (AEDA) shows that amidst post-COVID shifts towards remote work and a temporary dip in consumer spending, the City of Adelaide boasts a higher proportion of occupied shopfronts than vacancies. Even though there's a slight increase in vacancy rates between Q1 and Q3 2023, the figures remain in line with historical norms. Lease expiries coinciding with the financial year-end or business survival rates mirroring the peaks and troughs in activity could explain this.

Explore a preview of highlights from the report below.

Main Street Vacancy

Hindley Street and Hutt Street have the highest vacancy rates, contrasting Melbourne Street and Gouger Street. The report shows vacancy rates tend to stick to specific streets across multiple counts, revealing a unique resilience or vulnerability inherent to each area.

King William Street

  • On the verge of transformation, with three major developments in the pipeline.
  • The development of 60 King William Street has created an A-Grade office complex in the heart of the CBD.
  • King’s Lane, which runs alongside the office complex, served as the exclusive venue for AEDA’s ADL Fashion Week runway events. The space garnered significant attention, with stakeholder and public feedback indicating a keen interest in Adelaide’s newest laneway, unveiled during the launch.
  • The Marriott Hotel development at the former GPO building is nearing completion, expected by early 2024. The luxury hotel will be the first of the Marriott brand to open in Adelaide, highlighting the growing allure of Adelaide as an international and interstate tourist destination.
  • The newly opened La Louisiane and 60 King William exemplify the street's potential for high-end dining and retail.

Hindley Street

  • Remains an iconic shopping, dining, and entertainment precinct.
  • The west end consistently shows higher vacancy rates than the east end, emphasising the importance of coordinated efforts, such as the East End Coordination Group operating as a good example.

Gouger Street

  • Set to receive $15 million for streetscape upgrades between 2025 and 2027, this stands as a testament to the City of Adelaide's commitment to enhancing its urban fabric.

O’Connell Street

  • Undergoing a major redevelopment with the $15 million budget, focusing on the transformation of 88 O’Connell. This redevelopment aims to bring residential and retail spaces together, with the Mercato Artisan Italian becoming a focal point.

Melbourne Street

  • Positioned for a $6.5 million facelift, envisioning a hip café strip that aligns with the street's heritage. With collaboration from vendors, this concept could be a catalyst for continued growth.

Hutt Street

  • Despite a 17% vacancy rate, Hutt Street is experiencing revitalisation with new additions like Davaar House of Wellness and Logical Indian having joined the street.
  • There are also two new office buildings nearing completion.
  • The General Havelock Hotel, Bar Torino, and Chianti have completed renovations.
  • A $12.5 million streetscape upgrade is in progress.

Halifax Street

  • One of the most occupied streets with approximately 62 properties.
  • Halifax has a relatively low level of commercial properties, although it recently welcomed URPS and 35 staff to the street.
  • It gets busier as it connects with Pulteney Street, where most of the occupied properties are located.

Gilbert Street

  • It stands out with three operating hotels (the Duke of Brunswick, the Gilbert Street Hotel, and the Elephant and Castle) and a mix of small bars and restaurants.
  • The King William Street to Morphett Street strip contributes to the majority of the street’s occupancy.

Grote Street

  • Two large developments underway will bring residents, shopfronts, and a premium new hotel.
  • The redevelopment of the Adelaide Central Bus Station will further rejuvenate the area and bring more foot traffic to this area.

In the face of a slight increase in Q3 2023 vacancy rates, Adelaide's CBD remains a hub of activity. With ongoing developments, infrastructure upgrades, and a precinct approach to placemaking, the future of the city's main streets looks promising.

The allocation of funds by the City of Adelaide to improve the streetscapes indicates a commitment to creating vibrant, inviting spaces.

As new buildings near completion and the city adapts to evolving trends, the city continues to position itself as a dynamic and resilient destination.

View the full Main Street Occupancy Report Q3 2023 report here

Uncover additional data, the most recent economic reports, and more, by visiting the Data & Insights page.