Adelaide CBD Retail Vacancy Rise Opens Space for Service and Food Operators

Adelaide CBD retail vacancy rose to 9.3 per cent in the first half of 2025, ending a downward trend that had run since the first half of 2022. The increase stemmed from higher vacancy in one CBD centre and has created available space at a time when service operators and food and beverage retailers continue to secure high-profile locations.

Premium Brand Movements

Premium brands including Tiffany & Co, Zimmerman, Morrison and Georg Jensen have left Adelaide CBD sites and are opening at Burnside Shopping Centre. Internet retailer Salomon has opened its first South Australian store at Burnside Village. These moves have reduced fashion-related leasing activity inside the CBD while leaving premises available for other uses.

New Supply and Active Occupiers

Approximately 6,000 sqm of new retail supply entered the market in the third quarter of 2025 after completion of the Old Le Cornu site redevelopment at 88 O'Connell Street, North Adelaide. Inside the CBD itself, service operators and food and beverage retailers remain the most active occupiers taking high-profile space even as overall leasing activity for fashion operators has slowed.

The combination of higher vacancy and continued demand from service and food businesses points to an emerging opportunity for operators seeking CBD locations. Reports from CBRE, JLL and other market sources track these patterns through the first three quarters of 2025 and show service and food tenants filling the gap left by departing fashion brands.

Market participants are now watching how the available space is absorbed by the active occupier groups and whether further supply from the North Adelaide redevelopment affects CBD leasing momentum in the second half of the year.

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.