Office vacancy rate on the rise in Wollongong
Wollongong has recorded a rise in the vacancy rate in its CBD office market over the past 12 months, according to the Property Council of Australia’s latest Office Market Report released today.
The state of the office market and other property trends will be scrutinised at the Property Council’s annual Illawarra Outlook Lunch on February 11th.
“The vacancy rate in Wollongong rose from 11.1 percent to 13.7 percent in the past year,” said Property Council Regional Director – Illawarra, Peta Fitzgerald.
“A combination of negative demand and a small number of supply additions led to the result.
“Across the market, net absorption fell 3,485sqm – though the D grade market was immune to the trend and recorded a rise in net demand of 197sqm.
“Supply additions totalling 0sqm came into the market.
“The figures reinforce the need for policymakers to continue to lay a platform for investment and job creation in the City and broader region.
“We have strong investment across the region through retail, residential and infrastructure-oriented projects – but need that to convert to stronger jobs growth.”
Full details of the Office Market Report, along with expert analysis by a first-class panel on Wollongong’s retail, commercial and residential markets will be released at the Illawarra Outlook Lunch on Friday, 11 February at the Novotel Wollongong.
For further comment:
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Peta Fitzgerald |
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Attached: Further vacancy analysis
Analysis & commentary, Wollongong, January 2015
Note – analysis is the year to January 15
Headline comments:
- Total vacancy increased in the Wollongong market over the year to January 2015
- This was mainly due to the weakest demand on record
- D Grade stock was the only segment to experience positive demand
- There is no office space in the pipeline in the short to medium term
Vacancy analysis:
- Total vacancy increased from 11.1 percent to 13.7 percent in the year to January 2015
- The vacancy increase was due to net absorption of -3,485sqm, the weakest on record, and supply additions of 0sqm
- D Grade was the only segment to experience positive demand
Future supply:
- There is no office space in the pipeline for this market
- 5,200sqm of space is mooted
Key market indicators, Wollongong (aggregate)
|
Grade |
Vacancy, Jan 15 (%) |
Vacancy, Jan 14 (%) |
Net absorption, 12 months to Jan 15 (sq m) |
Net absorption, 12 months to Jan 14 (sq m) |
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A |
10.3 |
10.0 |
-231 |
660 |
|
B |
19.4 |
10.3 |
-2,224 |
-2,463 |
|
C |
15.7 |
12.9 |
-1,227 |
-668 |
|
D |
11.0 |
14.9 |
197 |
-273 |
|
Total |
13.7 |
11.1 |
-3,485 |
-2,744 |
More information available at www.propertyoz.com.au/officemarketreport