Adelaide Commercial & Industrial Property Market — September 2025 Update

Adelaide’s commercial and industrial sector is entering a new phase of strategic growth, with renewed confidence from developers, tightening land supply in key precincts, and a strong policy focus on defence, advanced manufacturing, and clean energy. While the market remains more stable compared to eastern states, the city’s key industrial hubs — from Edinburgh and Direk in the north to Lonsdale and Tonsley in the south — are experiencing increased leasing activity and land value growth. The emergence of new precincts tied to infrastructure upgrades and defence contracts is reshaping Adelaide’s industrial landscape.

Northern Adelaide Hubs Drive National-Scale Demand

Northern Adelaide remains the state’s industrial powerhouse, with large-format warehousing, logistics facilities, and defence-linked manufacturing concentrated around established zones.

• Edinburgh continues to be a strong performer with large sites suitable for warehousing and defence industry tenants

• Direk has seen a wave of interest from transport operators due to its access to the Northern Connector and intermodals

• Burton is attracting mid-sized fabrication and storage users, with lots under 10,000 sqm in high demand

• Parafield is experiencing increased pressure for commercial and light industrial expansion, driven by nearby population growth

• Penfield and Salisbury South offer strong prospects for custom-built logistics and D&C warehousing with flat, accessible land

Southern Corridor Benefits from Redevelopment and Innovation

The south is experiencing an uplift in activity as former automotive and manufacturing precincts are transformed into advanced industrial campuses. Strong transport links and access to skilled labour make this corridor attractive for new investment.

• Lonsdale is seeing land absorption increase rapidly across both light and general industrial precincts

• The Tonsley Innovation District is expanding, with tech-driven and energy-focused industrial users establishing a presence

• Noarlunga Downs and Seaford Meadows are being scoped for future mixed-use commercial and industrial zoning

• Redevelopment of older stock in Edwardstown and Marion is allowing infill logistics sites to emerge in metro-proximate areas

• Demand for solar and battery-ready industrial sheds is growing in the south due to tenant ESG requirements

Land Releases Signal New Growth Opportunities

While land supply remains constrained in Adelaide’s metro fringe, key releases and estate expansions in 2025 are opening up new opportunities for early movers and developers.

• Edinburgh North Industrial Estate has released additional lots ranging from 2,500–8,000 sqm with flexible usage zoning

• A new industrial land release at Direk South is attracting national interest with easy access to freight corridors

• Lonsdale East has begun marketing its next stage, targeted toward trade users and small-format warehousing

• Mawson Lakes Light Industrial Zone is being repositioned with mixed commercial/retail/light industrial usage to meet local needs

• Rezoning proposals in Virginia and Globe Derby Park could deliver a long-term land pipeline for northern logistics

Government & Defence Infrastructure Shape Strategic Outlook

Adelaide’s industrial landscape is heavily influenced by government-backed defence and infrastructure investment, which is setting the tone for long-term market confidence and land absorption.

• The Hunter-class Frigate Program is underpinning massive industrial activity across the Osborne Naval Shipyard precinct

• The state government’s Hydrogen Jobs Plan includes land earmarked for energy tech development near Whyalla and Port Bonython

• Northern Connector and South Road Corridor Upgrades are improving logistics flow across the north-south axis

• The Australian Space Park adjacent to Adelaide Airport is now hosting aerospace manufacturing and supply chain tenants

• Continued investment in RAAF Base Edinburgh is strengthening demand for secure logistics and defence-adjacent warehousing

Suburb Spotlight: Edinburgh Powers SA’s Defence and Logistics Sector

Edinburgh remains South Australia’s most strategic industrial location, blending access, scale, and national interest. The suburb continues to be the focal point for long-term development planning and government-aligned industrial activity.

• Home to RAAF Base Edinburgh and the Edinburgh Defence Precinct, with long-term infrastructure commitments

• Offers large, affordable parcels ideal for build-to-suit developments in logistics, defence supply, and light manufacturing

• Linked directly to the Northern Connector, North–South Motorway, and freight intermodals

• Land values remain comparatively low, enabling high-yield opportunities for developers and investors

• Multiple national developers are landbanking for phased release and long-term D&C rollouts

Trends: Clean Tech, Infill Opportunity & Strategic Landbanking

Adelaide’s relatively affordable industrial land, plus its government-aligned priorities, are driving a specific set of market behaviours among developers, agents, and owner-occupiers.

• Strategic landbanking in north Adelaide corridors is accelerating due to scarcity of large titled land

• Small-format infill sites in metro areas like Edwardstown and Parafield Gardens are being repurposed for last-mile logistics

• Clean energy and battery storage operators are seeking 1–2ha sites near substations and freight corridors

• Owner-occupiers continue to dominate the small-lot market, with rising pre-commitment for sheds under 1,000 sqm

• Long-term tenancy security is a major focus, with rising demand for green-certified warehouses with solar, water reuse, and thermal efficiency

How Commercial Property Marketing Can Help

We understand the nuances of the Adelaide market — from defence-adjacent industrial developments to infill logistics and southern corridor innovation. Our marketing solutions help you visualise your opportunity, target the right tenants and buyers, and create confidence before a shovel hits the ground. From 3D site renders to full interactive IMs, let’s position your property for the best return.