Adelaide’s commercial property is demonstrating its strength on the national stage as a new report signals the sector has moved through the bottom of the cycle.
Colliers’ Office Middle Markets – Australian Investment Review (Q1 2026) report has revealed Adelaide’s office investment market is a national winner in the nation’s middle markets sector, with transaction volumes reaching $196m across 11 deals in 2025.
This is the strongest result since 2022, the report says, and reflects renewed investor engagement, and strong confidence in the market’s fundamentals.
The report also highlighted Adelaide’s buyer diversity was growing and that sentiment was strengthening.
Adelaide’s office market is kicking goals. Picture: Colliers
According to the report, there has been a clear shift in buyer behaviour, with local high-net-worth investors dominating activity, while owner-occupiers looking to capitalise on cyclical pricing and secure assets at discounted levels have re-emerged as a key market segment.
Colliers SA head of capital markets and investment services Jordan Schmidt said nationally, investor focus had shifted from location-driven strategies to assets offering value-add potential, strong income and repositioning upside.
“Adelaide is presenting as one of the most compelling office investment markets in Australia right now, underpinned by relatively strong yields, improving leasing fundamentals and a clear value proposition,” Mr Schmidt said.
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“We’re seeing a broadening of the buyer pool, with owner-occupiers and private capital taking advantage of pricing dislocation, while institutional groups are starting to re-engage as confidence returns to the market.”
The report noted while sales volumes were below long-term averages, momentum was building.
This was supported by solid leasing absorption a higher demand for quality assets.
Colliers capital markets and investment services national director Alistair Mackie said Adelaide’s commercial sector had a lot to offer.
Adelaide’s commercial real estate is among the best performing in the nation. Picture: Knight Frank
“Structural tailwinds are also supporting Adelaide’s outlook, including long-term government and defence investment, alongside favourable policy settings such as zero stamp duty for commercial property transactions,” he said.
“As the cycle progresses, we expect Adelaide to continue attracting capital seeking both yield and opportunity.
“Well-located assets with clear pathways to income growth or repositioning will be particularly well placed to outperform.”