C172 Flight Instructor reported a NMAC with another aircraft transiting the practice area nearby Class B airspace. Flight Instructor took evasive action to avoid a collision.

Narrative

Student and I were headed southeast in a Skyhawk in the practice box; 8500. We had made a call announcing our presence and intention to fly maneuvers at 8500 in the box. As we reached the SE edge of the box; we began a clearing turn 180 degrees to the left before starting a maneuver; and upon turning; I noticed (on ADSB in) traffic headed directly for us; a few hundred feet below; and climbing. We continued the turn in an effort to put the traffic to our right; but the traffic also began to turn right to avoid us; while also still climbing; as indicated on ADSB in. My student stopped the turn for a second or two when I tried pointing it out to him while also looking up the plane's call sign (to attempt to call them; but I saw that it was a call sign that would likely not be on frequency); then I instructed my student to continue turning to the west; seeing that they were still climbing toward us. At this point I visually saw them off my right; they were finally turning east to avoid us and saw that it was a Pilatus. We avoided them by maybe 0.1 miles? When we crossed by they were still 100-200 feet below us. I wondered why they weren't they in the bravo instead of blasting through our practice area. Overall I didn't feel unsafe; but evasive action needed to be taken; with the help of ADSB we were able to avoid each other.