The City is Dead: Common Perceptions About the CBD Debunked at AEDA’s Latest Data4Lunch Event

‘The city is so quiet’ and ‘towers and shopfronts are empty’ were among common perceptions about the CBD and North Adelaide debunked at the Adelaide Economic Development Agency (AEDA)’s sixth instalment of Data4Lunch.

New data analysed by AEDA showed the city’s economy had grown at a record rate—higher than eastern capital cities—attracting more foot traffic and sparking a demand for premium office space.

It comes as the number of local jobs in the city jumped from about 142,000 in 2019 to about 170,000 in 2023—a 19 per cent increase.

“A lot of people try to make the city out to be a dark and gloomy place … they say the city is dead—I’m sure you have heard that,” AEDA Economic Research Advisor and event speaker Jordon Tomopoulos said.

“But I really want to shine a light on the truth of what is going on and make it easy for you to discern between fact and fiction.”

New statistics revealed the city’s economy grew 5.7 per cent last fiscal year in comparison to the year prior.

It came in at third best in the country overall, only behind the City of Perth (7.2 per cent) and Canberra region (6.2 per cent).  

The city’s three-year average Gross Regional Product (GRP) growth rate was second highest in the nation (6.6 per cent), following the City of Perth at 9.3 per cent.  

“Over the past three years, the City of Adelaide’s economy has grown at a higher rate than its 20-year average, reflecting recent economic growth have been higher than normal,” Mr Tomopoulos said.

“Forecasts indicate growth will continue at an elevated level but adjusts to lag effect of high inflation and interest rates”

Some of the strongest migration numbers in the state’s history played a key role in fuelling the city economy,” he said.

The number of residents, students and visitors to the city surpassed pre-COVID levels, data showed.

It comes as the number of workers on “peak” days between Tuesdays and Thursdays were almost back to pre-pandemic levels, sitting at 94 per cent.

“People want to come in and work from the city, which is a really important sign,” Mr Tomopoulos said.

“People come and get their morning coffee, then you also see restaurants packed for lunch and then people with retail bags when they are walking down Runde Mall.

“But what is really great is that we are seeing more people in the city on work nights … which is really positive because they want to have a good time.

“And what do all these visitors, workers and students do? Well, they spend.”

Data analysed by AEDA showed the number of GST registered businesses in the city were 10 per cent higher than pre-pandemic levels, up from 11,129 in 2019 to 12,338.

However, smaller businesses faced the brunt of rising costs, with numbers softening in 2023 after some were forced to shut their doors.

“We have all these businesses closing up, but it’s actually a fact that there have been less businesses opening,” Mr Tomopoulos said.

“I think this reinforces why, as an agency, we put so much time and effort into the start up space – that is why we have strategic partnerships with ThincLab, that is why we do the ThinkSeed program, that’s why we sponsor _SOUTHSTART.

“That’s also why so many people in my team look at how we can (offer) support and (have) programs for emerging industries.”

While the number of small businesses with one to four employees declined, there was growth in medium to large sized and non-employing businesses, with companies such as Canva, Salesforce and Tetra Tech opening their doors in Adelaide.

AEDA works closely with businesses, either opening their doors or relocating to the CBD and North Adelaide, through its Welcome to Adelaide program.

Demand for premium office space is high and continues to be high, Mr Tomopoulos said.

New office tower developments increased the amount of stock available, however, businesses were snapping up the opportunity to move or relocate into the Adelaide market.

“We’ve had over 100,000sq m of office and commercial space come online… and what is really positive to see is the pre-commitment for those premium office spaces,” he said.

“So there is a really strong demand for new office space, and this will be an interesting area for us as an agency to watch.

“Many new businesses have become ESG Compliant, so they have to be in buildings that represent that.”

From data about expenditure to foot traffic in Rundle Mall, keep up to date with the latest data and insights from across the city here.

Through the Welcome to Adelaide Program, AEDA supports businesses looking to open or relocate to the CBD and North Adelaide. Learn more here.

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