Wollongong businesses drawn to A grade offices as new developments hit the market

In the year to January 2022, commercial tenants took up nearly an extra 9000 square metres of A and B grade offices, according to data from the Property Council.

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Businesses were less keen on lower grades, with C and D grade offices dropping in total space leased out.

Despite COVID driving office workers to work from home, Property Council Illawarra regional director Michelle Guido said that reports of the death of the office are greatly exaggerated.

"A lot of companies and businesses are actually leasing more space, to allow for more collaboration space or meeting spaces."

Major developments completed in 2021 include the new IMB building on Burelli Street and the Gateway on Keira building at 140 Keira Street. Many businesses were looking for quality office spaces to entice their employees to return to the office, with sustainability, ventilation and collaborative spaces in demand.

More high grade office space is expected to enter the Wollongong market in the years ahead, including Lang's Corner on Crown and Kembla streets.

"We haven't seen this level of investment into commercial offices in a really long time," said Ms Guido. "So that's really exciting."

As the office spaces open for businesses, the increased number of workers in the city will in turn require transport and other infrastructure to service the population. Ms Guido said it was important to have a mix of transportation options so office workers did not only use their cars to commute.

"Building developments around train stations and within walking distance is a really good thing."

While current and proposed developments will enable Wollongong to address its historic lack of premium grade office space, an emerging need will be for shared spaces for start-ups and small businesses that operate remotely but need a physical space on a flexible basis.

In the long term, Ms Guido said that a urban development framework that set the vision for Wollongong's CBD would ensure that infrastructure, services and building types matched the needs of residents and workers into the future.

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