Adelaide CBD leaders weigh office supply choices and worker spending support after 5.7% growth

The City of Adelaide recorded a Gross Regional Product of $23.95 billion in 2023 with a 5.7% growth rate. Local employment stood at approximately 170,000 jobs that year, up from 142,000 in 2019.

These figures arrive as the Adelaide CBD office vacancy rate reached 15.5% in January 2026. The increase stems from new speculative supply rather than reduced occupier demand, while A-grade space drew most leasing activity. The timing matters because peak-day worker footfall has returned to 94% of pre-pandemic levels and GST-registered businesses have climbed 10% above 2019 counts to 12,338.

Worker expenditure and industry mix

Health care, retail trade and construction remain the leading industries for the 170,000 city workers. Those workers collectively spend an estimated $2.5 billion annually inside the CBD and North Adelaide, averaging $72 per day and generating $205 million in monthly outlays. The visitor side added record hotel revenue of $43 million in March 2024, with international and domestic travel volumes 10% above Q1 2023 levels.

Net absorption across the office market totalled 115,500 square metres from Q1 2023 through Q4 2025, with prime-grade space accounting for 108,500 square metres. Rental growth for prime space reached 13% nationally as of Q1 2025.

Decisions on supply and spending support

City officials and property owners now confront choices about the pace of additional speculative office projects and measures to maintain daily worker spending. The 15.5% vacancy reading and continued A-grade demand together frame the immediate question of how much new space can be absorbed without eroding rental values. At the same time, sustaining the $2.5 billion annual worker expenditure requires attention to transport access, retail mix and event programming that keeps peak-day attendance near current levels. Data from economy.id and City of Adelaide records will guide those calls in the months ahead.