Adelaide Retail Faces Vacancy Rise as Premium Brands Shift Focus to Burnside Shopping Centre

Adelaide’s central business district retail vacancy rate climbed to 9.3% in the first half of 2025, marking a reversal of a previously steady decline since early 2022, according to CBRE reports[1][9]. This uptick coincides with a notable migration of premium retail brands from the city centre to Burnside Shopping Centre, reshaping the local commercial geography.

Shifting Retail Dynamics Amid Global Economic Fluctuations

The rise in CBD vacancy is tied directly to broader global economic pressures that ripple through local markets. Despite improving consumer confidence and a 5.2% year-on-year rise in monthly household spending in South Australia as of August 2025[4], high-profile brands including Tiffany & Co, Zimmerman, Morrison, and Georg Jensen have chosen to close Adelaide CBD outlets in favour of Burnside Shopping Centre[2][7]. This redeployment indicates a strategic pivot to locations perceived as resilient or expanding amid changing shopping patterns.

Adelaide’s decline in new retail space is another factor. Just 6,000 square metres of new retail supply was completed in the third quarter of 2025, well below the 10-year average annual supply of 28,200 square metres[5]. This slowdown in development contrasts with rising demand in suburban hubs like Burnside, where Salomon recently opened its first South Australian store at Burnside Village, signaling fresh retail energy outside the CBD[3][12].

Local Impact: What This Means for Adelaide’s Retail Hubs

While the Adelaide CBD and Rundle Mall area experience a rising vacancy of 9.3% and 7.9% respectively[1][9][10], new retail growth is concentrated in Burnside Shopping Centre and its vicinity. The arrival of international and premium brands to Burnside reflects a marketplace realigning with consumer preferences for suburban convenience and diverse offerings.

This development comes amid ongoing transformations of the CBD skyline with over $1 billion in projects underway, yet the immediate retail environment grapples with vacancies as large-format retail rents grow by 3.9% quarter-on-quarter in early 2025, underlining localized pricing pressures[4][7]. The limited supply of new retail spaces intensifies competition for tenants, even as household spending benefits from easing cost-of-living pressures.[1]

Given these trends, Adelaide’s retail landscape is evolving as global economic changes shape local consumer behaviour and business strategies. The focus for retailers and investors is on how best to capture emerging consumer segments outside the traditional CBD core.

Looking ahead, retail stakeholders in Adelaide may need to explore diversification beyond the CBD, targeting suburban precincts where consumer spending is rising and new international entrants like Salomon are planting roots. Monitoring vacancy trends will be critical, alongside leveraging Adelaide’s broader economic strengths, including digital adoption and small-business growth priorities outlined in state industry policies to remain competitive.[1][2]

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.