As we navigate an increasingly complex investment landscape, South Australia presents a compelling proposition for private investors seeking stable, long-term growth across Adelaide's commercial real estate sectors. The convergence of economic resilience, affordability advantages, and robust fundamentals positions Adelaide as an attractive alternative to the volatility of larger capital cities.

The industrial and logistics sector has experienced remarkable rental growth, with the North West precinct recording a substantial 26.8% increase over the past three years. This performance reflects stable demand coupled with exceptionally low warehouse availability, creating favourable conditions for existing asset owners and strategic acquirers.

Industrial leasing activity exceeding 3,000 square metres totalled 170,100 square metres over the last 12 months, surpassing the 10-year annual average of 159,400 square metres. Private investors have recognised these fundamentals, with an average transaction size of $16.9 million reflecting typical acquisition targets in this sector.

Adelaide's retail market demonstrates remarkable resilience despite cost-of-living pressures. Rolling annual retail trade growth improved to 2.8% as of April 2025, recovering from a challenging period in late 2024. The neighbourhood sub-sector's transition toward service-based tenancies, including allied health and employment services, has reduced vacancy to 4.7% – well below the five-year average of 5.7%.

For private investors, Adelaide offers a unique combination of stability and growth potential. Syndicates and high net-worth individuals have accounted for approximately 63% of neighbourhood shopping centre acquisitions since 2020, with an average deal size of $22.0 million. This activity reflects the market's accessibility and the defensive characteristics of non-discretionary retail assets.

As we look ahead, Adelaide's strategic infrastructure investment and steady population growth position the city as a strong foundation for diversified portfolios. The market's affordability advantage, coupled with its resilient economic base, creates compelling opportunities for investors seeking alternatives to the eastern seaboard's volatility while maintaining exposure to Australia's commercial real estate growth story.

To read further analysis, access our report of the Adelaide market for private investors: link