An artist’s impression of the proposed Globe development on the former City Diggers and David Jones sites. It will include an eight-storey office building. Photo: The Globe Consortium/MMJ Real Estate.
Vacancy rates in Wollongong CBD’s office market are falling, indicating a “vote of confidence” in the city.
The latest Property Council of Australia Office Market Report shows total vacancy fell to 13.4 per cent, down from 15.2 per cent last year.
Property Council Illawarra and Shoalhaven regional director Matthew Wales said the result showed Wollongong could attract and retain tenants when the offer was right.
“Vacancy is falling because businesses are taking space again. That’s a real vote of confidence in Wollongong’s CBD,” Mr Wales said.
“We’re seeing the same ‘flight to quality’ trend that’s playing out nationally.
“Better buildings with the right location and amenity are winning, but older stock needs upgrading, or a new use, if it’s going to compete.”
When releasing Wollongong City Council’s Economic Development Strategy 2025-35, Lord Mayor Tania Brown said there had been significant growth in the Wollongong CBD, including a 50 per cent uplift in A-grade office space delivered, with another 40,000 sqm of commercial office space in the pipeline.
The strategy found that in the three years to June 2024, 39 per cent of new leases in the CBD were from businesses new to the region and 45 per cent of businesses that signed a new lease within the CBD had upgraded their office space.
It said the Wollongong CBD office market was 30 per cent more affordable than Parramatta CBD and 50 per cent more affordable than Sydney CBD.
Mr Wales said Wollongong now had a clear opportunity to build on recent momentum by lifting the quality of the CBD experience for workers and tenants.
“Wollongong has all the right ingredients to attract businesses and workers – a great lifestyle, a growing professional services base and proximity to Sydney,” he said.
“People will come into the office when it’s easy. Safe bike storage, showers, lockers, good cafes at ground level and buildings that feel modern.”
Mr Wales said state and local government needed to work with industry to make it easier to refurbish and renew buildings, back practical upgrades and support reinvestment to keep the CBD competitive.
