North-South Corridor: boom or bust for Adelaide industrial?

Adelaide’s largest infrastructure commitment to date, the $15.4 billion North-South Corridor project, is anticipated to complete in 2031, with the final 10.5-kilometre component, the River Torrens to Darlington (T2D) project currently under construction. The 78-kilometre road network running between Gawler and Old Noarlunga has been upgraded in stages since 2010, to improve freight movement and connectivity while stimulating economic growth.

Inevitably, large-scale projects bring short-term disruptions. The T2D project has led to traffic congestion, property and land acquisition, as well as business displacements. An additional 125 sites were compulsorily acquired along South Road in December 2022, bringing the total to 524. Displaced businesses searching for new accommodation have inflated demand in an already tight leasing market, and such disruptions, while temporary, have affected the immediate supply of industrial land. As a result, rents in the Adelaide market have increased significantly since the beginning of 2024.

Prime net rents in the Inner West/East and Inner South precincts are up 6.9% and 20.3% year-on-year respectively, exceeding the 10-year annual average of 3.3% recorded in the Inner West/East (2014 to 2023). Over the same period, secondary net rents rose even more sharply, with year-on-year increases of 25.5% in the Inner West/East and 37.1% in the Inner South.

The North-South Corridor project is expected to support economic growth, particularly within the industrial sector, by creating jobs, attracting investment and enhancing the competitive advantage of local businesses. Improved connectivity and freight efficiency will fuel demand for distribution centres and logistics hubs in surrounding industrial precincts, as businesses seek to capitalise on these operational improvements. The project is also likely to unlock the viability of industrial usage in the Outer South, where connectivity has been a barrier to user demand.

Reduced travel times are a key benefit of the North-South Corridor. Upon completion, travel times from Gawler to Old Noarlunga (the corridor’s full length) are estimated to halve during peak hours (reducing 2 hours and 15 minutes to 1 hour and 10 minutes), Additionally, peak hour commutes between Adelaide Airport and key industrial suburbs are expected to drop by up to 15 minutes, translating into lower transportation costs and increased operational efficiency for warehouse occupiers.

Assumptions:

• “Before” times are based on current traffic conditions (June 2025) during peak hours (7:30 AM – 9:00 AM and 4:30 AM – 6:00 PM)
• “After” times are projected based on the anticipated benefits of the completed North-South Corridor, including continuous flow and removal of traffic lights
• Distances are approximate and based on Google Maps calculations
   

Figure 1: Projected travel time savings (Adelaide Airport to key suburbs)

Source: JLL Research, Google Maps

While the North-South Corridor project presents short-term challenges related to supply, the long-term benefits for Adelaide's industrial market are significant, creating new opportunities for businesses and investors.