Lowest Vacancy in Seven Years for Wollongong Office Market

Wollongong’s office market is looking up, experiencing the lowest vacancy in seven years and on the road to becoming a destination of choice for employment with over 17,000sqm of new office space coming online in 2020.

Over the last year, the office vacancy rate has decreased from 10.0 per cent to 9.1 per cent to January 2020 due to withdrawals, showing signs of a healthy local economy and good prospects for local jobs across the city.

“We are currently experiencing record investment across our city, especially the increased projected supply of A Grade office space to attract business and professional services into the Wollongong CBD,” said Property Council Illawarra Regional Director Michelle Guido.

“With three of the largest commercial developments set to come online over the next year, this will not only ensure an increase in office supply, but also strengthen our local economy providing jobs, revitalising our city centre and bringing more people to the CBD.

“There is no doubt our region has a number of advantages when it comes to doing business - with proximity to Sydney, our large and skilled workforce, and excellent work-life balance, we need to continue working together to support the good growth of our city.

“Though we are seeing a huge amount of development in the CBD, we must not lose sight of our role in ensuring this continued investment and a future pipeline of works. With limited office space coming online over the medium term, our work does not stop here.

“Working strategically with all levels of government, industry and our key stakeholders to continue building on this growth, backed by good decision making, investment into infrastructure and transport connections and revitalising parts of our city centre is key.

“With a big year ahead reviewing the Illawarra Shoalhaven Plan, Local Strategic Planning Statements and continued advocacy for a city deal, it is the perfect opportunity to ensure we are taking the right steps to support this growth and stimulate investment in our city.”


Media contact: Michelle Guido | M 0437 315 198 |  E mguido@propertycouncil.com.au

 

Office Market Report January 2020

Analysis – Wollongong market

Note – analysis is the year to January 2020

Headline comments:

  • Total vacancy decreased in the Wollongong market over the year to January 2020
  • This was due to withdrawals
  • All grades of space have single digit vacancy except C Grade
  • There is some space due to enter the market in 2020

 

Vacancy analysis:

  • Total vacancy decreased from 10.0 percent to 9.1 percent in the year to January 2020
  • The vacancy decrease was due to 2,350sqm of withdrawals
  • All grades of space have single digit vacancy except C Grade

 

Future supply:

  • 17,443sqm of space is due to come online in 2020
  • After this there is no more space in the pipeline over the medium term
  • 9,200sqm of space is mooted

 

Key market indicators, Wollongong (aggregate)

Grade

Vacancy,

Jan 20 (%)

Vacancy,

Jan 19 (%)

Net absorption, 12 months to Jan 20 (sqm)

A

2.2

1.9

-1,136

B

8.4

11.3

1,251

C

18.6

18.9

-1,024

D

2.6

6.5

180

Total

9.1

10.0

-729