Wollongong”s Office Market is off to a confident start – experiencing positive demand with more than 11,500sqm of new office supply entering the Wollongong market, making the Wollongong CBD a destination of choice for employment and strong investment.
Property Council Acting Illawarra Regional Director Kelly Jones said these are signs of continued confidence by investors in the Wollongong CBD with an increase in the demand for A-grade office supply over the last year, and another 3,000sqm of office space in 2024.
“Whilst the office vacancy rate has increased from 14.7 per cent to 17.9 per cent in the last six months to January 2023, this is largely due to new office supply coming online, backed by increasing demand,” Ms Jones said.
“These are signs of a healthy local economy and good prospects for local jobs in the CBD, attracting business and professional services into the CBD.
“This continued investment will not only ensure an increase in office space supply and choice for local businesses, but also strengthen our local economy and continue to revitalise our city centre, while bringing more people to the CBD.”
Ms Jones said even with COVID-19 bringing many changes to the way we work, it is clear the office is not dead.
“With 11,500sqm of office space coming online this year and strong positive demand, our CBD still plays a pivotal role as a regional capital,” she said.
“Our proximity to Sydney, our large and skilled workforce and excellent work-life balance, makes Wollongong a key employment destination and we must continue working together to support good strategic planning and the growth of our city.
“This means working strategically with key stakeholders and all levels of government to the economic growth of our city, backed by good decision making and planning that supports business and investment in our CBD.”
Media contact: Aidan Green |Â E [email protected]
Office Market Report January 2023
Analysis “” Wollongong market
Note “” analysis is the year to January 2023
Headline comments:
- Total vacancy increased in the Wollongong market over the year to January 2023
- This was mainly due to supply additions
- All grades of space have double digit vacancy with the exception of B Grade
- There is some space due to enter the market from 2024 onwards
Vacancy analysis:
- Total vacancy increased from 14.7 percent to 17.9 percent in the year to January 2023
- This was mainly due to 11,500sqm of supply additions
- 4,408sqm of space was withdrawn over the period and net absorption was 362sqm
- All grades of space have double digit vacancy with the exception of B Grade
Future supply:
- 3,000sqm of space is due to come online in 2024
- This will be followed by 9,181sqm from 2025 onwards
- 4,400sqm of space is mooted
Key market indicators, Wollongong (aggregate)
