Research from Colliers has reported a robust  performance across Adelaide's active commercial strata market, with over $46 million of property  having transacted on the market throughout 2024 (excluding industrial stock), highlighting the  significant demand among owner occupiers and investors. As the only commercial real estate  agency in Australia to have a dedicated National Strata Platform, Colliers strata experts operate  across the country. 

The Property Council of Australia estimate there is 58,774 sqm of strata stock across Adelaide CBD  and fringe, compared to approximately 77,000 sqm and 89,000 sqm for the CBDs of Canberra and  Perth, respectively. Across Adelaide, 11,000 sqm is currently for sale on the open market, the  majority of this stock being CBD office space primarily located within B and C-grade buildings. 

There are several trends shaping Adelaide's strata market. Jack Dascombe, Executive, South  Australia | Investment Services, said, "A major trend we are noticing is the increase in buyers  utilising their self-managed superannuation funds (SMSFs) to purchase properties. Given the  flexibility SMSF structures provide businesses regarding taxation and leaseback configurations for  their place of business, it is becoming more common for this structure to be used in strata  transactions." 

Championing Colliers National Strata Initiative for SA, Mr Dascombe noted, "Across Colliers' strata  listings, a greater number of prospective purchasers are enquiring about the surrounding tenant  mix. Buyers prefer to position their businesses among complementary trades and are mindful of the  synergies this can generate." 

Rhys Newman, Associate Director, South Australia | Investment Services, commented, "We have also  observed a growing number of traditionally residential investors entering the commercial property  market. This shift is partly due to recent reforms to SA's Residential Tenancies Act, which have made  it harder for landlords to manage tenants. Strata properties offer an affordable transition from residential to commercial stock, with commercial property providing stronger returns often in line  with or in excess of term deposit rates." 

Statistics for the 12 months to December 2024 show that the average sale price for strata assets in  Adelaide is $730,514 and an average yield of 5.61%. 

Mr Newman also noted, "Attributes of particular interest include opportunities for vacant  possession, as they appeal to both owner-occupiers and investors and customisable layouts, with  lightweight partitions providing a greater number of options at a reduced refurbishment cost.  Access to parking is always a valuable feature, with individual car park spaces in the CBD transacting  for between $22,000 and $60,000+ per space."  

A recent Colliers transaction that highlights the strong demand for strata opportunities is the recent  sale of 253 Henley Beach Road, Torrensville. The property presented as a blank canvas opportunity  in the tightly held inner western suburbs.

Mr Dascombe said, "The campaign attracted significant  interest due to its fantastic positioning in combination with our aggressive canvassing efforts and  ability to provide the appropriate level of guidance to participating groups." As a result of 67  enquiries and four contract offers, the asset ultimately led to an unconditional sale to an owner occupier and achieved a 45% uplift in pricing since the property was last transacted less than three  years prior. 

"As we move into 2025, Adelaide's commercial strata market is poised for continued growth,  especially for quality opportunities in key locations such as core office and retail precincts,"  concluded Mr Dascombe.