CBRE

FIGURES|ADELAIDECBDOFFICE|Q32025

RobusteffectiverentgrowthinAdelaideCBDofficelast12months

15.0%$652/sqm35.0%7.7

OverallVacancyRate(Jul-25)CBDPrimeGrossFaceRents(+3.7%y-0-y)CBDPrimeIncentives(-45bpsq-0-q)PrimeYieldasofQ3-25

Note:Arrowsindicatechangefrompreviousquarter.

FIGURE1a:AdelaideCBDOffice|MarketSummary

AdelaideCBD

July2025

Jan2025

July2024

H-o-HChange

Y-o-YChange

VacancyRate

15.0%

16.4%

17.5%

-140bps

-250bps

KeyPoints

-Tenantenquiryvolumestotallingc.90,000sqmwasrecordedinAdelaideduringQ32025,down2%y-o-y.Enquiryvolumesreceivedoverthepast12monthsis30%higherthanthe10-yearaverage

FIGURE1b:AdelaideCBDOffice|SummaryofPrimeMarketIndicators

-Netabsorptionremainedstrongtotalling22,326sqmforH12025.Netabsorptioninthepast12monthshasbeen44,932sqm,significantlyabovethe10-yearannualaverageofc.12,500sqm.

025

Q32024

Adelaid

eCBD

Q32

Q22025

Q-o-QChange

Y-0-YChange

GFR

$652

/sqm

$650/sq

m

$629/sqm

+0.3%

+3.7%

NFR

$499

/sqm

$497/sq

m

$478/sqm

+0.5%

+4.4%

Incenti

ves

35.

0%

35.5%

35.2%

-45bps

-17bps

Yield

7.

7%

7.7%

7.6%

+1bps

+8bps

一TheAdelaideCBDoverallvacancyrateasofJuly2025wasat15.0%decreasingfrom16.4%inJanuary2025,drivenentirelybythestrongnetabsorption.

-PrimegrossrentsendedQ32025atanaverageof$652persqm,increasingby0.3%q-0-qand

3.7%y-0-y.Primeincentiveratesdecreasedby45bpsq-0-qandnowaverage35%.

-50FranklinStreet(c.21,000sqm)haseffectivelyreachedpracticalcompletionduringQ32025andwillbeaddedtothestocklevelthishalf-weighingonmarketvacancy.

$=AustralianDollarAUD

CBD=Core&Framemarkets

-Yeartodatec.$170millionofinvestmenttransactionvolumesrecordedacrossAdelaideoffice,runningbelowthe10-yearannualaverageofc.$570million.

-Midpointyieldsremainedlargelystableq-0-qwithprimecurrentlyat7.7%andsecondaryat9.5%.

Source:CBREResearch

1

CBRERESEARCH◎2025CBRE,INC.

FIGURESIAdelaideCBDOffice|Q32025

FIGURE3:AdelaideOffice|EnquiryVolumes

OfficeDemand

Strongenquiryvolumerecordedlast12months

Totalenquiryvolumes(sqm)acrossAdelaide'sofficemarketdecreasedslightlyby2%y-o-yinQ32025,totallingc.90,000sqm.Thenumberofenquiriesreceivedinthequarterwasinlinewiththesameperiodlastyeartotalling191.Overthepast12monthsc.297,000sqmofenquirieshavebeenrecorded,30%higherthanthe10-yearaverage.DespitedemandinAdelaidebeinghealthy,occupiercautionwasnotableinthequarterfromnationalandinternationalbasedoccupiers

likelyduetothesofteningnational/globaleconomiclandscape.

SouthAustraliaboastsadiversifiedeconomyacrossmanyindustries(figure2),whichprovidestheofficeoccupiermarketresilience.Morerecentlyoccupierdemandhasbeenbroadbased

acrossarangeofindustriesincludingprofessionalservices,informationmedia&telecommunications,financialservices,healthcare,defenceandgovernment.

DuringH12025strongnetabsorptionof22,326sqmwasrecorded,continuingthehighdemandlevelseeninthestartof2024(H22024=22,606sqm,H12024=29,041sqm).Netabsorptionhasbeensignificantlyabovethe10-yearsixmonthaverageofc.6,000sqm.DemandduringH12025wasdrivenbyprimegradeassetstotalling22,683sqm.Thesecondarymarketrecorded

netabsorptionof-357sqmduringH12025.

202020212022202320242025

NLAsqm----10yaverageNLAsqm□Numberofenquiries(RHS)

Source:CBREResearch

FIGURE4:AdelaideCBDOffice|6-MonthNetAbsorption(sqm)

30,000

25,000

20,000

15,000

10,000

5,000

0

-5,000

-10,000

FIGURE2:SouthAustraliaFY24EconomicCompositionbyIndustryGrossValueAdd

■Healthcareandsociaassistance

27%24%%0.7%11.8%

3.0%

31

9.3%

4.3%

4.3%

7.9%

4.6%

5.3%7.3%

5.8%

6.1%

5.8%5.9%5.9%

■Ownershipofdwellings

■Construction

■Financialandinsuranceservices

■EducationandTraining

■Agriculture,forestry&fishing

■raoascitouianlg,scientific&technicalservices

■Publicadministration&safety

■RetailTrade

■Mining

■WholesaleTrade

■Transport,postal&warehousing

■Administrative&supportservices

■Electricity,gas,water&wasteservices

120,000

100,000

■■

80,000

150

60,000

40,000

20,000

0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

250

200

100

50

0

H1H2

H1H2

H1H2

H1H2

H1H2

H1H2

H1H2

H1H2

H1H2

H1

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

■Accomodation&foodservices

6-MonthNetAbsorption---10-yrSixMonthAverage

■Rental,hiringandrealestateservices

Source:ABS.CBREResearch■OtherservicesSource:PCA.CBREResearch

2CBRERESEARCH◎2025CBRE,INC.

FIGURESIAdelaideCBDOffice|Q32025

3CBRERESEARCH◎2025CBRE,INC.

Supply

NonetsupplyaddedduringH12025

Havingseenarecordhighof78,109sqmofnetsupplyaddedtothe

marketin2023,Adelaide'sCBDsupplylevelhasbeenmutedduringH12025,wheretherewasanetwithdrawalofstocktotallingjust9sqm.

Therewasjust911sqmoftotalsupplyinH12025,whichincludedthe

additionof656sqmfromrefurbishmentof61CarringtonStreet.Thetotalsupplywasoffsetby920ofstockwithdrawninrelationto228-230PirieStreetfordemolition.

50FranklinStreettoaddc.21,000sqmtomarket

50FranklinStreethaseffectivelyreachedpracticalcompletion,adding

c.21,000sqmtothemarket.Alargeportionofthebuildingremainsvacantandisthereforeexpectedtoweighonthemarketvacancyrateinthe

January2026PropertyCouncilofAustraliaupdate.

MarketSquarewhichcomprisesc.22,000sqmofofficeisexpectedtoreachcompletionaroundQ32026andcloseto57%ofthisspacehasalreadybeentakenup.Thesetwoprojectscurrentlyaccountfor2.7%oftheAdelaideCBDofficestock.

TheInnovationCentreattheLotFourteendevelopment(c.15,000sqm)isnowconfirmedtoproceedandwillbedeliveredbytheSAGovernment.Constructionisexpectedtocommencein2026withcompletionexpectedin2028.Thepre-commitmentrateforLotFourteencurrentlysitsaround

77%.

WalkerCorporation'sFestivalTower2development(c.50,000sqm)isthe

Figure5:AdelaideCBDHistoricNetSupply(sqm)

50,000

40,000

30,000

20,000

0(10,000)(20,000)

H1H2

2021

H12025

H1H22018

H1H2

2020

H1H2

2014

H1H2

2024

H1H2

2015

H1H2

2016

H1H2

2023

H1H2

2017

H1H22019

H1H2

2022

10,000

NetSupply---10-yrSixMonthAverage

Source:PropertyCouncilofAustralia,CBREResearch

FIGURE6:AdelaideCBDSupply,RecentCompletionsandPipeline(sqm)

60,000

DAApproved

Under

Complete

50,000

Construction

40,000

30,000

20,000

10,000

0

83Pirie60KingFestivalSAHMRI185Pirie15050MarketLot14Festival

StWilliamPlaza2StGrenfellFranklinSquareTower2

StStSt

H22022H12023|H22023H12024H22024H12025H22025H12026H22026H12027H22027H12028H22028Mooted

othermajorprojectinthepipelinehowever,giventhescaleofthisproject

itwillrequirepre-commitments.Source:CBREResearch■Leased2Vacant

FIGURESIAdelaideCBDOffice|Q32025

4CBRERESEARCH◎2025CBRE,INC.

Vacancy

Primevacancydecreases3.0percentagepointsduringH12025astenantdemandforqualityspacecontinues

Adelaide'sCBDvacancyratetightenedby1.4percentagepointsto15.0%asatJuly2025.Thevacancydeclinehalfonhalfwasdrivenentirelybythestrongnetabsorptionof22,326sqm

recorded,giventhatnetsupplywasvirtuallynil(netwithdrawaljust9sqm).

Thevacancyrateinprimegradebuildingsdecreasedsubstantiallyby3.0percentagepointsto15.1%inJuly2025(downfrom20%inJanuary2025).Primevacancyhasnowdecreasedby6.9percentagepointssincetherecentpeakof22.0%reachedinJanuary2024(duetoalargeamountofsupply).ThevacancyreductionduringH12025wasdrivenbycontinuedtenant

demandforprimegradestockasnetabsorptionof22,683sqmwasrecordedforprimegradebuildings.

SecondarygradevacancyremainedstableduringH12025at14.9%.Thiswasduetonet

absorptionforthesecondarygradepartofthemarketbeingmutedat-357sqm.Inaddition,therewasminimalsupplyinthesecondarygrademarket.

MinimalsubleasespaceinAdelaideCBD

AspertheCBREQ32025subleasebarometer,theAdelaideCBDhadminimalsubleasespaceavailable,totallingc.3,000sqm.Overthepast12monthssubleasespaceavailableinthe

AdelaideCBDhasdecreasedbycloseto7,700sqm,giventhestrongleasingmarketcondtions.

TheAdelaideCBDsubleasevacancyrateasofQ32025stoodatjust0.2%withallavailablesubleasespaceattributedtotenantscontractingtheirspace

FIGURE7:AdelaideCBDOffice|LeasingMarketSummary

Market/Grade

InventoryJul25

VacantSpaceJul25

VacancyRateJul25

(6monthDiff)

NetAbsorption

6months

Prime

753,338sqm

113,407

sqm

15.1%

(-3.0pp)

22,683sqm

Secondary

817,029sqm

121,702

sqm

14.9%

(-0.0pp)

-357sqm

Total

1,570,367sqm

235,109

sqm

15.0%

(-1.4pp)

22,326sqm

Source:PCA

FIGURE8:AdelaideCBDOffice|SixMonthNetAbsorption(sqm)NetSupply(sqm)andVacancy(%)

50,00025%

20%

15%

10%

5%

40,000

30,000

20,000

10,000

0

-10,000

Dec-14

Jun-15

Jun-16

Dec-16

Jun-17

Dec-17

Jun-18

Dec-18

Jun-19

Dec-19

Jun-20

Dec-20

Jun-21

Dec-21

Jun-22

Dec-22

Jun-23

Dec-23

Jun-24

Dec-24

Jun-25

-20,000

0%

Dec-15

PrimeVacancy(RHS)

NetSupply

TotalVacancy(RHS)

NetAbsorption

-SecondaryVacancy(RHS)

Sources:PCA,CBREResearch

FIGURESIAdelaideCBDOffice|Q32025

5CBRERESEARCH◎2025CBRE,INC.

RentalPerformance

SolidrentgrowthintheAdelaideCBDofficemarket

GrossrentsintheAdelaideCBDhavebeenseeingsolidgrowthoverthepast24monthsasfacerentshavetrendedupduetothestrongoccupiermarketandincreasesin

outgoings.Rentgrowthhasbeenmoreprominentinprimegradeassetsoverthepast24monthsgiventhestrongerdemandandrepositioningofGen1assetsthatare

commandinghigheraveragerentalrates.Regeneratedbuildingswithupgradedlobbiesandamenitiesareattractingstronginterestastenantsseekqualityatmoreaffordablepricepointsthanbrandnewtowers.

Duringthequarteraverageprimegrossrentsincreasedby0.3%q-0-qand3.7%y-0-yto$652persqm.Primeincentivesdecreasedslightlyby45bpsq-0-qtonowaverage35%leadingtoaverageprimeneteffectiverentgrowthof1.2%q-0-qand4.6%y-o-ytonowaverage$324/sqm.

RentsinthesecondarygrademarketalsosawcontinuedgrowthduringQ3,increasingby0.2%q-0-qand4.5%y-0-ytonowaverage$413/sqm(grossbasis).Somechangesto

enhancethesamplebasketofpropertiesinthepriorquarterhascontributedtothestrongery-o-ycomparison.SecondarygradeincentivesremainedstableduringQ3averaging42%.

Lookingahead,Adelaide'sofficemarketisexpectedtoseecontinuedrentalgrowth

drivenbythepositivedemandfundamentalsandtherepositioningofGen1assetswhichareattractingstrongtenantinterestandrentalpremiums.Theupcomingsupplyfrom50FranklinStandMarketSquaredevelopments,howeverpresentaheadwindtomarket

vacancy.

FIGURE9:AdelaideCBDOffice|PrimeGrossFaceRents,NetEffectiveRents,andIncentives

RentalRates(AUD/sqm)Incentives

700

600

500

400

300

200

40%

35%

30%

25%

20%

15%

10%

5%

0%

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

2019202020212022202320242025

Incentives(%)GrossFaceRent一NetEffectiveRent

Source:CBREResearch

FIGURE10:AdelaideCBDOffice|SecondaryGrossFaceRents,NetEffectiveRents,andIncentives

RentalRates(AUD/sqm)Incentives

500

400

300

200

100

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q32019202020212022202320242025

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Incentives(%)GrossFaceRent一NetEffectiveRent

Source:CBREResearch

FIGURESIAdelaideCBDOffice|Q32025

6CBRERESEARCH◎2025CBRE,INC.

InvestmentMarket

AdelaideofficemarketyieldslargelystableinQ3

mutedrelativetohistoricactivity.Around$170millionoftransactionshavebeenrecordedinthe

InvestmenttransactionvolumesinAdelaide'sofficemarketinthefirstninemonthshaveremained

CBDandsuburbanmarkets(transactions≥$5million)yeartodate,runningbelowthe10-year

annualaverageofc.$570million.IntheCBD,themostnotabletransactionthisyearhasbeen

Centennia'sacquisitionof63PirieStreetacquiredfromRaptisInvestmentsfor$50.5million.

NotableassetstotransactoutsidetheCBDduringQ32025include176-180PortRoadwhichwas

divestedbyMaximaTrainingfor$15.2millionand134FullartonRoadinRoseParkwhichhassoldfor

$11.1million.

AdelaideCBDofficemidpointyieldsremainedlargelystableduringQ32025.Primegradeyieldscurrentlyaverage7.7%andsecondarygradeyieldsaverage9.5%.

Investmentvolumesshouldbegintoseeanupliftgiventheimprovingclarityemergingfortheofficeinvestmentmarketduetofallinginterestrates.TheReserveBankofAustraliahascutinterestratesby75basispoints(asofO