IndustrialChris ThomsonTue 25 Aug 26
Factors Align as Adelaide Industrial Sales Bolt from the Blocks
Twenty-four transactions totalling $404 million in the first half of 2026.
Adelaide’s industrial investment market has begun the year strongly and is likely to power through to 2027, according to a report by global realtor Knight Frank.
Adelaide Industrial State of the Market Q2 2026 author and Knight Frank partner Tony McGough said Adelaide continued to attract investors due to its strong industrial market fundamentals.
“With volumes already past last year’s halfway mark, Adelaide is on track to exceed 2025 volumes, though volatile global conditions are always a risk,” he said.
“Investors continue to be attracted by Adelaide’s combination of relatively affordable pricing, low vacancy, ongoing rental growth and limited industrial land supply.”
Of the $404-million overall sales figure, Knight Frank negotiated $129-million or 32 per cent.
Deals included the $25.25-million sale of 6-14 Oxenham Street at Dudley Park (leased by the Department of Defence) and the $22.25 million sale of 46-58 Ashwin Parade at Torrensville (a cold storage facility leased to PFD Food Services).
Also completed were the $21.5 million sale of 5 Talisman Avenue at Edwardstown (which is leased to the South Australian police force) and the $18.5 million sale of 2-4, 6, 8-10 & 9-13 Turin Place and 26 & 28 Bremen Drive at Salisbury South, the latter leased to Australian Whole Foods.
Knight Frank head of capital markets for South Australia Max Frohlich said there was strong investor appetite for well-located industrial property offering secure income, quality tenant covenants and long-term growth potential.
“We continue to see strong demand from private investors, syndicators and institutions seeking quality industrial assets across Adelaide,” he said.
“The Dudley Park and Edwardstown assets we sold offered government-backed income, and Torrensville and Salisbury South were secured by strong national tenant covenants that operate in the non-discretionary food supply chain.
“These transactions demonstrate the breadth of capital targeting Adelaide’s industrial market, from private investors through to professional fund managers seeking secure income and long-term growth opportunities.
Frohlich said Adelaide continued to offer compelling value compared to larger eastern seaboard markets, and benefitted from strong occupier demand, low vacancy and ongoing land value growth.
The report showed Adelaide’s industrial fundamentals remained supportive of investor demand, with prime net face rents increasing 3.1 per cent year-on-year to an average of $149 per square metre. Industrial land values increased 10.5 per cent for small lots and 13.9 per cent for medium-sized lots over the past year.
Logistics centre changes hands
Meanwhile, a logistics facility in Adelaide’s outer north has sold for $12.125 million.
The property at 75 Kaurna Avenue at Edinburgh has 6767sq m of gross lettable area on a 15,734sq m site opposite a Coles distribution centre and surrounded by major occupiers including DHL and PepsiCo.
A private investor bought the facility in a deal negotiated by Bennett Lane’s Matthew Lane and Guy Bennett and Knight Frank’s Max Frohlich and Ryan Mills on behalf of vendor MA Financial Group.
Frohlich said the campaign had generated 105 enquiries.
“The result reflects continued confidence in Adelaide’s industrial sector and the growing appeal of Edinburgh Park as a major logistics and industrial destination,” he said.
“Investors continue to be attracted to Adelaide’s low vacancy environment, strong rental growth trajectory and relative value compared with the eastern seaboard markets.”
