Wollongong Office Market Report
Wollongong is on the rise to become a destination of choice for employment as office vacancy continues to decrease and future supply of office space set to double over the next two years.
Over the last year, the vacancy rate in Wollongong’s office space has decreased from 10.6 per cent to 10.0 per cent in January 2019, indicating a healthy local economy and a good prospect for local jobs across the city.
One of the highlights from this year’s Office Market Report is the increase in commercial office space due to come online over the next couple of years, with around 16,000sqm already in the pipeline which will vastly increase commercial activity in the city.
This is positive news for Wollongong as we continue to attract industry to the city and grow the number of local jobs that are available to people who live within the region. We look forward to building on this growth and investment by working together with all levels of government to ensure we are continuing to attract industry to the region across all sectors.
Wollongong Office Market Report – January 2019
Headline comments:
- Total vacancy decreased in the Wollongong market over the year to January 2019
- This was due to withdrawals
- Demand over the period was negative
- A Grade is the only segment with single digit vacancy
- There is some space due to enter the market over the short to medium term
Vacancy analysis:
- Total vacancy decreased from 10.6 percent to 10.0 percent in the year to January 2019
- The vacancy decrease was due to 2,518sqm of withdrawals
- Demand was negative with -1,387sqm of net absorption recorded
- A Grade is the only segment with single digit vacancy
Future supply:
- 5,200sqm of space is due to come online in 2019
- This will be followed by 11,195sqm from 2021 onwards
- 10,000sqm of space is mooted
Key market indicators, Wollongong (aggregate)
|
Grade |
Vacancy, Jan 19 (%) |
Vacancy, Jan 18 (%) |
Net absorption, 12 months to Jan 19 (sqm) |
Net absorption, 12 months to Jan 18 (sqm) |
|
A |
1.4 |
3.4 |
1,538 |
3,735 |
|
B |
18.0 |
19.3 |
384 |
-1,134 |
|
C |
19.4 |
16 |
-2,702 |
-424 |
|
D |
13.7 |
18.6 |
-607 |
1,431 |
|
Total |
10.0 |
10.6 |
-1,387 |
3,608 |