property

Adelaide CBD Prime Yields Drop to 7.75%, Secondary Assets Hit 9.5%

Midpoint yields for prime CBD assets reached 7.75 per cent and secondary yields reached 9.5 per cent as of late 2025 amid broader repricing.

By Adelaide Cbd Property Desk · Published 19 July 2026

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This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. Adelaide Weather News is part of The Daily Network and follows our reasonable editorial care.

Adelaide CBD Prime Yields Drop to 7.75%, Secondary Assets Hit 9.5% — Photo by David W Geddes / flickr (pdm)

Investor yields in the Adelaide CBD have softened modestly as part of wider market repricing, with prime midpoint yields at 7.75 per cent and secondary yields at 9.5 per cent as of late 2025. Demand continues for both income-producing assets and repositioning opportunities.

Yields Signal Repricing in Core Assets

The figures come against a backdrop of solid momentum in the Adelaide CBD office market during Q1 2026. Positive net absorption and steady leasing activity occurred even as vacancy rose slightly to 15.5 per cent after completion of the 21,412 sqm 50 Franklin Street building. Investors continue to assess returns on higher-quality and refurbished stock where prime gross rents rose 7.3 per cent year-on-year to an average of $723 per sqm as of early 2026.

Transactions Highlight Local Asset Activity

Recent deals illustrate the market in action. The landmark 75 Hindmarsh Square office building sold for $42.4 million, marking the first major office settlement in the city in 2026. A separate CBD site is undergoing $35 million redevelopment into Adelaide's largest private mental health hospital. These transactions show continued interest in both established buildings and sites suitable for repositioning.

Industrial Sector Maintains Tight Conditions

The Adelaide industrial market remains extremely tight, with vacancy at 2.8 per cent. Take-up exceeded 30,000 sqm in Q1 2026 across logistics, manufacturing and defence sectors. This tightness supports overall investor interest in income-producing opportunities alongside the office segment.

Market participants are monitoring how the modest yield softening interacts with leasing momentum and transaction volumes. Further data releases will clarify whether demand for quality assets sustains current pricing levels for both prime and secondary holdings.

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.