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Adelaide CBD Addresses Economic Conditions Through Local Services and Decisions
City data shows continued focus on employment growth and business support amid shifting office market conditions.
How we reported this
The City of Adelaide recorded a Gross Regional Product of $23.95 billion in 2023, with the local economy expanding 5.7 percent in the 2022/23 fiscal year. This performance coincided with the office vacancy rate rising to 15.5 percent by January 2026, driven by new supply entering the market while net absorption held at 33,023 square metres across 2025.
Employment and Business Trends
Local employment reached approximately 170,000 jobs in 2023, up from 142,000 jobs in 2019. Education and Training remained the largest employing sector. The number of GST-registered businesses stood at 12,338, which is 10 percent above pre-pandemic levels. These figures reflect sustained activity in the Adelaide CBD, where mainstreet occupancy averaged 90 percent in 2024-2025 and city worker return rates reached 80 percent.
Local Services and Decisions
City services continue to support worker spending, with an estimated $2.5 billion generated annually by CBD and North Adelaide workers at an average of $72 per day per worker. Local decisions have centred on maintaining tight supply constraints that underpin rental fundamentals while monitoring the effects of speculative office development on vacancy levels. Visitor-related revenue, including $43 million in accommodation income recorded in March 2024, adds further support to the city economy through established services.
Sixty-four percent of businesses view the city as a good place to do business. This perception aligns with ongoing local efforts to sustain employment and business registration growth through targeted services rather than broad new programs.
Further monitoring of absorption rates and vacancy data will guide adjustments to these services in the months ahead, with no fixed timelines announced.