0 100 200 300 400 500 600 -4 -2 0 2 4 6 8 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 % annual change $ million Forecast Source: ABS State final demand (left axis) Total approvals (right axis) 21 Adelaide experienced little by way of new supply in Q3 2022, with no completions exceeding 5,000 square metres. Nonetheless, project completions ramped up in Q4 2022 with a 25,876 square metres Mainfreight warehouse on Gallipoli Drive in Regency Park completed, along with a 7,000 square metres building on 13-17 Sturton Road in Edinburgh, a 6,710 square metres warehouse at the Nexus North Industrial estate in Salisbury South and La Casa Di Formaggio’s 10,000 square metres facility in Edinburgh. As a result, over 120,000 square metres of new supply was added to stock last year, well above the long run average. Even so, low vacancy rates show that the market easily absorbed this supply. The Outer North remains a focus for supply, responsible for around half of the completions last year. Based on projects underway, the volume of completions across Adelaide is set to fall back towards the long run average this year with less than 100,000 square metres of new supply due to be added to stock (of which more than half the space is already committed). This years’ supply pipeline includes facilities for Chep (12,260 square metres), Apex Steet (21,980 square metres) and Linfox (21,850 square metres) along with the Osborne North future submarine construction yard. Looking at approvals, in MAT terms, the total value of warehouses and factories rose back towards peak levels at $350 million over the year to November. More than two thirds of this total was warehouses, most notably in the West and North regions. This suggests that the volume of completions is likely to pick up later this year. However, the strength of demand and low vacancies point to further rises in rents until substantial new supply is completed. Supply Supply outlook Adelaide demand and industrial building approvals Industrial Market Monitor | 1st Half 2023
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