Convenience store ‘influx’ improves Hindley Street retail vacancy rate
Retail vacancy on Hindley Street continues to fall from recent highs, buoyed by an “influx” of convenience stores, while there is a sharp increase of vacancy on The Parade.
The latest Adelaide Retail High Street Overview by real estate firm JLL shows improvement in vacancy rates along Hindley Street in the latest quarter.
The report, which tracked vacancy rates over the six months to 31 March 2025, shows Hindley Street with the highest rate of vacancy of the high streets studied at 15.1 per cent.
This is down from a nearly 20 per cent vacancy one year ago, which was the highest vacancy rate recorded on Hindley Street since the pandemic hit.
JLL said the vacancy rate along Hindley Street decreased for consecutive six-monthly periods, falling from 17.8 per cent in Q3 2024 to 15.1 per cent in Q1 2025.
“However, it is still the precinct with the highest vacancy of all tracked high streets,” JLL research director Rick Warner said.
JLL said vacancy improved because of new entrants to the strip including Canopy Bar (which replaced Stem at 188 Hindley St), Yuku dō (which replaced Levant Eatery) and Bank Street Burger.
The vacancy rate along Hindley Street is improving, in part due to an “influx” of convenience stores. Photo: Helena Snelling/InDaily
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But it was an “influx” of convenience stores on the strip that improved the vacancy rate, Warner said.
There are now 11 convenience stores on Hindley Street – two more than in Q1 – equating to 7.5 per cent of the total tenancy mix.
Warner said multiple student accommodation projects in various stages of planning “may materialise in the northwest corner of the CBD, which is likely to support increased daytime pedestrian traffic”.
It comes as South Australian retail trade growth is recovering after reaching a cyclical low of 1.9 per cent year-on-year growth in November 2024.
JLL said spending on dining out in SA continued to outpace broader market spending, with retail trade growth in cafes, restaurants and catering services reaching 4.4 per cent year-on-year.
Fashion spending “remains a drag on broader growth”, Warner said, but SA’s labour force remains strong.
The blended vacancy rate was 7.9 per cent, up from 7.7 per cent in Q3 2024.
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Sharp increase in vacancy on The Parade
In Norwood, retail vacancy on The Parade rose from 2.6 per cent in Q3 2024 to 6.6 per cent in Q1 2026.
Vacancy on The Parade has consistently been the lowest over the last two years, but is now above that of King William Road (5.5 per cent) and Jetty Road (4 per cent).
JLL said the rise could be attributed to multiple business closures over the last six months, including Lone Star Rib House, Knightsman Bespoke Tailors, Janesce and Pinot & Picsso.
New openings included beauty retailer Urban Glow and Indian restaurant Tomatoes Cuisine.
“It is expected that retailer demand will improve as high-density residential projects along the strip complete over the medium term,” Warner said.
New low for fashion on Rundle Street
Fashion operators within the Rundle Street tenancy mix decreased to the lowest level since mid-2022 (30.6 per cent of all retailers) after the closure of Derma Department and Azalia Boutique.
But hospitality offerings were trending upwards, Warner said. Two new yoghurt stores opened in the last six months alongside Lebanese restaurant Zayt & Zataar.
Convenience retail is another plug for vacancies on Rundle Street, with two more opening on the strip.
However, many convenience retailers on Rundle Street are currently temporarily closed after Minister for Consumer and Business Affairs issued 28-day closures for Rundle East Convenience, Rundle City Convenience and The Ultimate Convenience.
This followed raids by members of Consumer and Business Services’ illicit tobacco taskforce, where illegal cigarettes, vapes and nicotine pouches were seized.
