THE PROPERTY DEVELOPMENT REVIEW
rate in Q1. 2026 to 2.8 per cent, up from 2.3 per cent in the previous quarter,” he said. “Leasing availability remains heavily skewed toward secondary grade options, which account for almost 60 per cent of vacant floorspace. “In contrast, prime grade leasing options are concentrated in a limited number of larger facilities, including Leyton Funds at 1772 Main North Road [at] Salisbury Plain (19,922 sqm) and Realside Ovest at Ovest Business Park [at] Salisbury South (10,500 sqm).” Crawford said that additions to supply in Quarter 1 totalled almost 20,000sq m, underpinned by Charter Hall’s Edinburgh Logistics Park in Adelaide’s outer north and Harmony’s Gillman Industrial Estate in the inner north. “For the balance of the year, there is just over 110,000 sqm in the pipeline, which includes 20,910 sq m within Centuria’s development at Direk and DHL’s 20,000 sqm facility at Edinburgh Park, both of which are in the outer north submarket,” he said. “A handful of developers remain active in bringing speculative developments to market, capitalising on the undersupply of prime leasing options.” He said that in Quarter 1 speculative projects amounted to about 85,000 square metres. “Active industrial land supply across Adelaide is limited, with less than 2.5 years of supply remaining based on recent take-up trends,” he said. “While there is land supply in the longer-term pipeline, most of this is not serviced, or the current ownership structure is prohibitive for development. “This environment has placed upward pressure on land values across all size brackets, supported by solid owner- occupier demand.”
Renewal SA is offering the three blocks together or as separate parcels.
ADELAIDE BUCKS PRICE STAGNATION Renewal SA’s land release comes as new Cushman & Wakefield figures show that prime rents for industrial property remained largely flat across Australia in the first quarter of 2026 except in Adelaide where prime rents grew 1.7 per cent. Compared to Adelaide’s result, prime rent rises in other capitals were modest, with Melbourne recording 0.1 per cent, Sydney 0.2 per cent, Brisbane 0.9 per cent and Perth remaining dead flat at 0.0 per cent. Cushman & Wakefield’s Australian head of logistics and industrial research Luke Crawford said price growth had been strongest in outer Adelaide, with the outer north and outer south submarkets both jumping by more than 9.0 per cent in Q1 2026. Despite Adelaide’s rise in rents, Crawford said the vacancy rate for established industrial properties across the SA capital rose by 2.8 per cent over the quarter. “The addition of secondary-grade backfill leasing options in the inner north drove an increase in Adelaide’s vacancy
Harmony’s Gillman Industrial Estate in the inner north.
April / May 2026 – 91
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