Premium Brands Flood Burnside as Adelaide CBD Retail Vacancy Rises

The retail landscape in Adelaide is experiencing a nuanced shift as the Adelaide CBD retail vacancy rate rose to 9.3% in the first half of 2025, ending a steady decline seen since 2022. Meanwhile, Burnside continues to gain momentum, luring premium retailers and witnessing new store openings, signalling a realignment in where South Australians choose to shop [1][2][9][10].

Why Movement Matters Now

These changes come at a time when consumer spending in South Australia is on the rise, with monthly household spending up 5.2% year-on-year in August 2025. This increase reflects easing cost-of-living pressures and a rebound in consumer sentiment, factors that encourage retailers to rethink their market positioning to capture renewed shopper interest [1]. Although Adelaide’s broader city centre foot traffic has surpassed pre-COVID levels-making it one of Australia's strongest post-pandemic retail performers-the higher vacancy rate in the CBD suggests a reconfiguration of shopper preferences rather than a wholesale decline in retail activity [6][1].

Burnside's Growing Appeal to Premium and New Retailers

Burnside Shopping Centre is emerging as a hotspot, attracting premium brands like Tiffany & Co, Zimmerman, Morrison, and Georg Jensen, all of which have exited Adelaide’s CBD to open stores there. The movement of these prestige brands highlights Burnside’s growing reputation as a prime retail precinct catering to more diverse and upscale demand [2]. The arrival of Salomon-a first for South Australia-at Burnside Village adds an adventure and gorpcore-focused dimension to the local offer, complementing the existing mix of retailers and broadening customer choice [4].

Rundle Mall, while still part of the CBD, maintains a comparatively lower vacancy rate of 7.9%, benefitting from its diverse retail mix that continues to draw steady foot traffic [1][9]. Meanwhile, 6,000 sqm of new retail supply opened in Q3 2025, mostly stemming from the redevelopment of the Old Le Cornu site at 88 O’Connell Street, suggesting ongoing investment in the city’s retail fabric [1][3].

Evidence of Growth Amid Change

Retail construction activity also points to a positive outlook, with approximately 37,900 sqm of retail space under development in Adelaide expected to complete by Q3 2026, indicating that market participants are betting on future demand even as the CBD vacancy rate rises [1][5]. Prime large format retail rents in Adelaide experienced robust growth in the first quarter of 2025, with net face rents increasing by 3.9% both quarter-on-quarter and year-on-year. This rent growth confirms that landlords are capitalising on market dynamics, especially in larger retail formats that may better meet evolving consumer needs [7].

Additionally, the substantial $1 billion invested in new projects transforming Adelaide’s skyline underscores confidence in the city’s retail and commercial sectors, and supports increased foot traffic and economic activity [6].

Looking Ahead for Retailers and Shoppers

Retailers considering their next moves should recognise Burnside’s pull for premium brands and newcomers looking for an engaged customer base in a less saturated environment compared to the CBD core. For established CBD retail players, differentiating through unique offerings and leveraging proximity to Rundle Mall’s established destinations will be vital.

Shoppers benefit from more choice both in the CBD and at increasingly vibrant suburban centres like Burnside. As new retail spaces come online over the next year, consumer access to fresh, diverse retail experiences will improve, positioning Adelaide for continued post-pandemic vibrancy. Stakeholders monitoring vacancy trends and rental rates should prepare for a dynamic retail sector recalibrating amid evolving consumer habits and economic conditions.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.