July opened the new financial year with a run of significant transactions across Tasmania’s commercial property market, headlined by several of the largest institutional-grade sales recorded in recent months. Activity spanned the industrial, retail, office and development site sectors, with local investors particularly prominent alongside continued interstate participation.
The South delivered the month’s standout transaction at 89 Cambridge Park Drive, Cambridge, a substantial office and warehouse holding fully leased to State Government tenants across the Department of Health and Department of Justice. With a 10-year WALE and estimated net annual income of approximately $1.98 million plus GST, the asset offered highly predictable income from essential service-based Government tenants on a 2.81 hectare landholding with further development potential. Salamanca also featured prominently, with 24 Salamanca Square, Battery Point, a substantial two-storey heritage warehouse underpinned by Botanica Bar, Banjo’s Corporation and Telstra Limited, transacting with net passing income of approximately $477,128 per annum.
Industrial and hospitality assets rounded out southern activity, including 30 Pearl Street, Derwent Park, a clear-span warehouse with cold storage infrastructure and commercial kitchen sold off-market to a local investor, and 119 Liverpool Street, Hobart, a refurbished character building fully leased to long-term hospitality operator Berta on a 7.5-year WALE. Owner-occupier demand remained evident, with 118 King Street, Sandy Bay selling off-market with vacant possession.
89 Cambridge Park Drive, Cambridge
The North recorded its largest transaction in some time at 35–51 Dowling Street, Launceston, a significant 82,980 sqm landholding with 9,742 sqm of lettable area fully leased to Strait Link Logistics, returning approximately $718,461 per annum on a sub 6.00% initial yield. Located on the city fringe, the property offers compelling future redevelopment potential. Smaller retail and development site activity also featured across Launceston, Invermay, George Town and Youngtown, with national retail operator Minimax securing a renewed five-year lease at 50 Brisbane Street, Launceston.
35-51 Dowling Street, Launceston
The North West was notably active, led by 95–105 Wright Street, East Devonport, a dual-tenanted logistics facility leased to national operators Strait Link and Team Global Express, returning approximately $582,069 per annum sold to a local investor. Office investment also featured, with 37–39 Steele Street, Devonport selling to an interstate investor on a 6.35% yield, leased to an established mix of national and local tenants including Hearing Australia, H&R Block and Weir Group. Smaller retail, office and development site transactions were recorded across Sheffield, Queenstown, Burnie and Quoiba.
Across the board, securely leased assets with strong tenant covenants and long WALEs continued to command competitive interest, particularly where underpinned by Government or national operator covenants. Logistics and cold storage infrastructure proved a recurring theme, while vacant possession stock maintained appeal among owner-occupiers.
Key Observations
- Government and national tenant covenants underpinned the month’s largest transactions, with long WALEs commanding premium investor interest.
- Local investors were the dominant buyer group across the month’s major transactions, with interstate investors active in the North West.
- Heritage and character retail assets in prime precincts, particularly Salamanca and central Hobart, continued to attract strong demand.
- Yields on prime leased investments ranged from the mid-5% to 8% bracket, reflecting variation in covenant strength, lease term and redevelopment upside.
South
89 Cambridge Park Drive, Cambridge
A substantial office and warehouse holding comprising approximately 6,897 sqm of building area on a 2.81 hectare site, fully leased to State Government tenants comprising the Department of Health (Ambulance Tasmania and Care@Home) and the Department of Justice (WorkSafe Tasmania and Consumer Building and Occupation Services).
24 Salamanca Square, Battery Point
A substantial two-storey heritage warehouse comprising approximately 753 sqm of building area on a 546 sqm site, generating net passing income of approximately $477,128 per annum excluding GST. Income is underpinned by established operator Botanica Bar, Banjo’s Corporation and Telstra Limited (ASX: TLS). Positioned on a prominent corner within Salamanca Square and adjoining the world-renowned Salamanca Place precinct, the property is distinguished by original sandstone walls, exposed timber roof trusses and a cathedral-ceiling attic level.
119 Liverpool Street, Hobart
A beautifully refurbished two-storey character building comprising approximately 174 sqm of building area on a 137 sqm site, sold as a 100% leased asset to long-term hospitality operator Berta. The property offers a WALE of 7.5 years providing excellent occupancy stability, with net income of approximately $75,340 per annum plus GST from an established commercial tenancy and significant infrastructure in situ.
30 Pearl Street, Derwent Park
A clear-span industrial warehouse comprising approximately 610 sqm, sold off-market with vacant possession to a local investor. The property is supported by cold storage infrastructure, a commercial kitchen and freezer room.
29 Possum Road, Bridgewater
A high-clearance industrial warehouse and office facility comprising approximately 1,275 sqm of building area on a 3,389 sqm site, held under lease with a current net income of approximately $177,332 per annum plus GST. The warehouse and office component totals approximately 1,241 sqm.
1/10 Lampton Avenue, Derwent Park
A multi-tenanted mixed-use investment on a single title, comprising approximately 399 sqm of building area on an 840 sqm site, generating passing net income of approximately $79,718 per annum. The well-presented complex incorporates warehouse accommodation, showroom and office space, together with a long-standing and popular takeaway premises. Zoned General Industrial.
118 King Street, Sandy Bay
A retail property comprising approximately 295 sqm of building area on a 278 sqm site, sold off-market with vacant possession to an owner-occupier. Recently extensively refurbished, the property now offers a modern, open-plan layout. Zoned Inner Residential.
1626 Main Road, Nubeena
A dual-tenanted retail property comprising approximately 163 sqm of building area on a 786 sqm site. The property is currently used as a hair salon and a thriving café, complete with bain-marie, dining essentials, dishwasher, kitchen items and office equipment.
North
35–51 Dowling Street, Launceston
A significant industrial landholding of approximately 82,980 sqm with an extensive lettable area of approximately 9,742 sqm, sold to a local investor on a sub 6.00% initial yield. Fully leased to Strait Link Logistics with passing net income of approximately $718,461 per annum plus GST. Located on the city fringe, the property presents compelling future redevelopment potential (STCA).
50 Brisbane Street, Launceston
A retail building comprising approximately 385 sqm on a 385 sqm site with over 13 metres of frontage. Secured by a renewed five-year lease from February 2027 to national retail operator Minimax, with current net rental of approximately $92,440 per annum plus GST. Zoned Central Business.
307 Invermay Road, Invermay
A retail property comprising approximately 94 sqm on a 94 sqm site, sold with vacant possession. The flexible building area is suitable for a wide variety of retail, office, hospitality and service-based businesses. Zoned Commercial.
22 Macquarie Street, George Town
A dual-use property on an 86 sqm site, combining retail space on the ground floor with a vacant one-bedroom apartment above. A three-year commercial lease is in place on the ground floor, with estimated net annual rental on a fully let basis of approximately $29,911.50 excluding GST.
38 Charbooday Drive, Youngtown
A General Industrial-zoned development site of approximately 2,267 sqm, sold with vacant possession to a local developer. The zoning allows for a broad mix of uses including warehouse, storage, logistics and industrial development (subject to council approval).
Quamby Estate, 1145 Westwood Road, Hagley
A landmark historic country estate set across approximately 64 hectares of parkland, farmland and landscaped grounds, sold as one of Northern Tasmania’s most distinctive rural holdings. Located approximately 20 minutes from Launceston, Quamby Estate features a grand 1828 homestead with ten ensuite guest rooms, reception and dining spaces, established gardens, a private lake, nine-hole golf course, licensed clubhouse and purpose-built events pavilion. The property is well recognised for its heritage, scale and established accommodation, events and hospitality infrastructure.
93 Paterson Street, Launceston
A former Launceston TAFE building comprising approximately 900 sqm, sold off-market as an education-backed commercial holding. The property is home to Indie School’s Launceston campus and provides substantial existing accommodation within a central city fringe location.
North West
95–105 Wright Street, East Devonport
A dual-tenanted logistics facility comprising approximately 2,234 sqm of improved lettable area on a 14,737 sqm site, sold to a local investor. Leased to national logistics operators Strait Link and Team Global Express, with current passing net income of approximately $582,069 per annum plus GST and a WALE of approximately 3.03 years as at May 2026. The lettable area is efficiently configured to support warehousing, office and distribution uses, and includes large-scale cool room and freezer facilities.
37–39 Steele Street, Devonport
An office investment comprising approximately 530 sqm, sold to an interstate developer on a 6.35% yield. Leased to an established mix of national and local tenants including Hearing Australia, H&R Block, Weir Group and a local health and beauty operator, returning net income of approximately $114,210 per annum plus GST across both properties. Strategically positioned on Steele Street at the edge of the Devonport CBD, the properties benefit from strong exposure to passing traffic, proximity to key services and valuable on-site rear parking.
36 Don Road, Devonport
An industrial work shed of approximately 280 sqm, held by a long-term tenant with income of approximately $22,500 per annum.
46 Main Street, Sheffield
A retail property comprising approximately 227 sqm of building area on a 329 sqm site, sold with vacant possession. The building offers a generous street-front retail/showroom area, previously utilised as a gallery space, providing open-plan flexibility and strong visual appeal from the street. Beyond the main retail zone, the property opens into a series of additional rooms and utility spaces including storage, workrooms, amenities and cool room facilities, allowing for a wide range of commercial uses or reconfiguration options (STCA).
9 Orr Street, Queenstown
An office property comprising approximately 158 sqm of building area on a 169 sqm site, sold with vacant possession. The building comprises renovated office space, most recently occupied as consulting and meeting rooms. Zoned General Business.
83 Mount Street, Burnie
An office property comprising approximately 108 sqm of building area on a 374 sqm site, sold with vacant possession. The property features a modern fit out, convenient parking and functional amenities.
Disclosure: Tasmanian Commercial Market Wrap only reports on transactions in the Tasmanian commercial property market. Elders Commercial provides this information as a public service. We are not purporting that all sales within this report were transacted by Elders Commercial. Where third-party sales are noted, this data has been sourced from industry providers.