One of the big four banks has moved to a new space in Wollongong’s CBD following a recent leasing deal demonstrating the strong flight to quality trend in the city.

The Commonwealth Bank of Australia Business Banking arm has leased around 470sqm on the top floor at 140 Keira Street, known as ‘Gateway on Keira’, in the city.

The six-year lease for the space in the three-level A-grade building was struck at a rate of $440/sqm net plus GST per annum in a deal negotiated by Knight Frank agent Ben Mostyn.

140 Keira Street, developed in 2020 by Jerrara Investments Pty Ltd, has a total net lettable area of 4,897sqm.

Mr Mostyn said the tenant was previously located in North Wollongong, but wanted to be closer to the CBD, due to proximity to amenities, ease of access for customers and the desire for high quality office accommodation.

“This transaction highlights the occupier trend of flight to quality for office space in Wollongong. CBA are a blue-chip covenant, committing to a six-year term in an asset that has premium offerings in a convenient and centralised business location, encouraging an improved work/life balance for staff.

140 Keira Street is the epitome of premium office accommodation, with large spacious open plan floor plates encouraging connectivity, secure basement parking, exceptional end-of-trip facilities, sweeping city and escarpment views, abundant natural light and beautiful staff amenities. It is also surrounded by quality retail and lifestyle amenity, as well as major transport links.

“The asset has attracted a variety of Government, private and ASX listed corporates seeking quality space, and the fact that this speculative development has achieved such a high occupancy rate demonstrates the flight to quality in the post COVID market. Other tenants in the building include Kelly Partners, ODPP and PRP Advisers.”

Mr Mostyn said companies were placing significant focus on the selection of office space largely to attract staff back to the office, but it was also about creating client-facing offices that reflect a more premium offering.

“We are seeing a greater number of quality assets being built in the Wollongong CBD, with the city recording its largest influx of new supply over the past three years with 25,693sq m of new stock added across four major developments, an increase of 17% in total office stock to currently measure 177,911 sq m.

By elevating the standard of office spaces, Wollongong CBD is set to attract a diverse range of businesses, fostering a dynamic urban centre that caters to a modern, quality-conscious workforce. Opportunity for businesses to move into a building with improved amenity is more affordable than what people think, making the current opportunities at locations like 140 Keira Street even more attractive.”

CBA Executive Manager Business Banking Philip Alcock said: “Having spent 14 years located at Wollongong’s Innovation Campus, CBA Business Banking was determined to return to the heart of Wollongong CBD. The opportunity presented at 140 Keira Street, Wollongong was the perfect fit, matching a high-quality building coupled with a first class fit out.

Through such an attractive office offering including modern technology, professional client meeting spaces and loads of natural light, the CBA team have loved their move back into town.  The proximity to amenity and other CBD located clients has made the relocation a positive experience for the team and the business community.”

Wollongong Council Economic Development Manager Mark Grimson said: “The Invest Wollongong program and recently released Investment Prospectus highlights the significant economic opportunities underway across a range of key sectors in Wollongong. One of those opportunities is the growth of the professional services and tech sector within the Wollongong CBD, with 50% growth in new A-grade office space having been delivered in just the last 4 years, with another 50,000 sqm now approved.

In fact the performance of the Wollongong CBD was acknowledged by Property Council’s February 2024 Annual Office Market Report as one of the best performing non-capital office markets in the country in the last 6 months.”

Knight Frank’s latest Wollongong Insight report found the Wollongong CBD was forecast to reach over 195,000 sqm of office space if all schemes in the development pipeline come to fruition.

The research found a positive demand outlook, coupled with growth in face rents and relative yield disparity to other major non-CBD markets will only enhance the appeal to investors for quality assets in the Wollongong CBD.

Wollongong’s coastal amenity and the cultural appeal of its work-life balance, gateway location and thriving business community has attracted an unprecedented level of investment into upgrading its infrastructure and skyline. 

According to Regional Development Australia there is an unprecedented $33 billion pipeline of planned infrastructure and major projects planned for delivery by 2041.

For real estate markets, this investment coupled with Wollongong’s supportive demographic profile will be key influences on the shape and magnitude of occupier demand across a number of sectors.

Related Readings 

Wollongong former NAB building sold to local by Burgess Rawson and Knight Frank 

Heritage property on doorstep of Sydney’s Circular Quay for sale - Knight Frank

Surry Hills retail & commercial property sold for the first time in 27 years - Knight Frank