Wollongong-feature
Image – Canva
  • Wollongong's office market has experienced positive demand
  • Almost 11,500 sqm of new office space will come online this year
  • Office vacancy increased from 14.1% to 14.7%

The Property Council of Australia (PCA) has labelled Wollongong’s CBD a destination of choice for employment and strong investment after its office market experienced positive demand, with almost 11,500sqm of new office space due to come online in 2022.

PCA Illawarra regional director Michelle Guido said over the last year more than 8,000sqm of new office supply entered the Wollongong market demonstrating confidence by investors in the Wollongong CBD.

The office vacancy rate has increased as a result of this supply from 14.1% to 14.7% in January 2022.

Ms Guido said, “Increased demand shows signs of a healthy local economy and good prospects for local jobs in the CBD.”

Michelle-Guido
PCA Illawarra regional director. Image – LinkedIn

According to PCA’s Office Market Report for January 2022, demand was still positive, with 6,161sqm of net absorption recorded and all grades of space experiencing double digit vacancy.

Key market indicators, Wollongong (aggregate)

Grade Vacancy, January 2022 (%) Vacancy, January 2021 (%) Net absorption, 12 months to January 2022 (sqm)
A 13.1 15.5 7422
B 10.1 12 1502
C 21.4 14.5 -27000
D 12.2 10.8 -63
Total 14.7 14.1 6151

Source: Office Market Report, January 2022

“We are currently experiencing record investment across our city, especially with the increased supply of A-Grade office space to attract business and professional services into the Wollongong CBD.”

Such investment will see an increase in office space supply and choice for local businesses, as well as strengthening the local economy by providing jobs, revitalising the city centre, and bringing more people to the CBD, said Ms Guido.

“With 11,500sqm of office space set to be delivered this year and strong positive demand, our CBD plays a pivotal role as a regional capital,” said Ms Guido.

Future Supply

The report stated the 11,500sqm made available will be followed by 9,181sqm from 2024 onwards.

4,400sqm of space is mooted.



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