Almost one-fifth of the office space in Wollongong's CBD now lies empty, but the region's property lobby group says it is not concerned about the growing vacancy rate.
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Wollongong had the fastest growing vacancy rate in the six months to January of any CBD covered in the Property Council's latest Office Market Report, with 17.9 per cent of offices now sitting empty.
However, acting Illawarra regional director Kelly Jones said this was not an indication of a lack of interest in Wollongong's office spaces.
"Whilst the office vacancy rate has increased from 14.7 per cent to 17.9 per cent in the last six months to January 2023, this is largely due to new office supply coming online, backed by increasing demand," she said.
"These are signs of a healthy local economy and good prospects for local jobs in the CBD, attracting business and professional services into the CBD."
Wollongong added an additional 11,500 square metres of office space in the last year.
In 2022, the first tenants moved in to the recently completed Lang's Corner, which added 15,000 square metres of office space across 11 floors.
Further developments will continue to add office space in the Wollongong CBD, with an expected 3000 square metres to open up in 2024 and nearly 10,000 planned for 2025 onwards.
The ongoing demand for higher grade office space was seen in positive net absorption figures over the past 12 months, meaning more tenants moved in than moved out, in A and B grade office space.
Ms Jones said Wollongong continued to be an attractive location for firms.
"Our proximity to Sydney, our large and skilled workforce and excellent work-life balance, makes Wollongong a key employment destination and we must continue working together to support good strategic planning and the growth of our city," she said.
"This means working strategically with key stakeholders and all levels of government to the economic growth of our city, backed by good decision making and planning that supports business and investment in our CBD."
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