The September quarter highlighted continued demand for securely leased investments, with buyers placing a premium on strong covenants, longer lease terms and predictable income. Retail recorded the highest number of transactions, while major industrial, logistics and office sales demonstrated continued appetite for quality assets at the upper end of the market. Local investors and owner-occupiers remained active across Tasmania, supporting demand across a wide range of price points.
Transaction volumes have moderated year on year, with 75 sales recorded during the quarter compared with 93 from Q3 2025. Despite the lower volume, several substantial transactions were completed, while increasing activity across the North and North-West Tasmania demonstrated the growing geographic depth of the market.
The South recorded steady activity across hospitality, retail and industrial assets. 2–6 Penna Road, Midway Point, a freehold hospitality venue leased to the Midway Point Tavern on a renewed 5-year lease, sold to a local investor on a 5.85% yield, while 1322 & Lot 6 Lonnavale Road, Lonnavale, home to River’s Edge Wilderness Camping, transacted via Expressions of Interest.
Midway Point Tavern, 2–6 Penna Road, Midway Point
Industrial activity featured 6–16 Austral Place, Derwent Park, fully leased to ASX-listed Boral Construction Materials Group, alongside smaller industrial sales in Cambridge and Moonah. Office and retail investment activity also continued, with 447–449 Main Road, Glenorchy and 184 New Town Road, New Town both selling to local investors on secure multi-tenant leases.
The North again recorded the highest volume of sales, with several significant off-market transactions recorded across Launceston, including development sites at 3 Waterworth Lane, Newstead and 58–60 Paterson Street, as well as retail investments at Unit 6/139–143 Hobart Road, Kings Meadows and 242 Charles Street.
Unit 6/139–143 Hobart Road, Kings Meadows
Owner-occupier demand remained evident across Invermay and Launceston, with vacant possession sales at 69–73 Elizabeth Street, 143 Wellington Street and 217 Invermay Road.
The North West saw steady activity, led by 11A Wiseman Street, Shorewell Park, the Shorewell Plaza neighbourhood retail centre, which sold to an interstate investor via Expressions of Interest underpinned by essential service and convenience-based tenants.
Shorewell Plaza, 11A Wiseman Street, Shorewell Park
2–28 Mount Hicks Road, Wynyard, an 8.91 hectare approved residential subdivision site sold to a local developer, while 27 Reibey Street, Ulverstone, a well-established retail butchery investment, also transacted, along with 1–3 Anglesea Street, Wivenhoe, a multi-tenanted industrial asset on a site of 8,739 sqm.
Key Observations
- Quarterly transaction volumes moderated year on year (74 sales versus 93 in the same quarter of 2025), though several substantial transactions underscored continued appetite at the upper end of the market.
- Neighbourhood and convenience retail centres with essential-service tenant mixes attracted strong interstate and local investor interest.
- Development sites across the North and North-West continued to draw local developer and investor demand.
- Hospitality assets with secure leases and CPI-linked rent reviews remained attractive to local investors.
- Owner-occupiers remained active across smaller retail and industrial assets, particularly in Invermay and Launceston.
- Yields on leased investments generally ranged from approximately 5% to 6%, reflecting continued investor confidence in secure income streams.
South
184 New Town Road, New Town
A mixed retail and residential investment of approximately 316 sqm on a 1,106 sqm site sold to a local investor on a 5.97% yield. The property comprises three ground-floor retail tenancies generating net commercial income of approximately $66,507 per annum plus GST, and a first-floor residential unit returning approximately $27,300 gross per annum. The holding benefits from prominent frontage to one of Hobart’s busiest arterial roads, with approximately 600 sqm of undeveloped land at the rear zoned Urban Mixed.
2–6 Penna Road, Midway Point
A freehold hospitality venue of approximately 1,022 sqm on a 0.52 hectare site sold to a local investor on a 5.85% yield. The property is leased to the Midway Point Tavern on a renewed 5-year net lease with annual CPI reviews, returning net rent of approximately $300,000 per annum plus GST. The venue offers a full-service hospitality experience under one roof, encompassing bar, dining area, gaming lounge, TAB and bottle shop, complete with a separate manager’s residence.
13–15 Gregory Street, Sandy Bay
A rare dual-tenancy freehold commercial asset of approximately 366 sqm on a 955 sqm site sold to a local investor on a 5.10% yield. The property generates net passing income of approximately $96,059 per annum plus GST and is positioned within the highly regarded Sandy Bay commercial precinct. The purchaser intends to owner-occupy the asset in future.
6–16 Austral Place, Derwent Park
A substantial industrial manufacturing facility of approximately 5,024 sqm on a 0.5 hectare site, zoned General Industrial. The property is fully leased to ASX-listed Boral Construction Materials Group Ltd on a 5-year term from 2014 with five further 5-year options, generating current rental of approximately $125,175 per annum plus GST and outgoings. Improvements include a concrete mixing depot.
19 Chesterman Street, Moonah
An industrial property comprising approximately 258 sqm of building area on a 655 sqm site, sold with vacant possession, formerly leased to TPW Performance Warehouse. The property combines front retail and office accommodation with a separate functional clear-span workshop, mezzanine storage and a high-clearance electric roller door.
20 & 22 Watchorn Street, Hobart
A retail and office property of approximately 479 sqm on a 383 sqm site, zoned Central Business. Partially occupied by Coffee Darling, with vacant office and retail space and 3–4 undercover car parks. The site adjoins a proposed multi-level designer hotel and sits opposite a proposed nine-storey office and retail tower, offering significant potential upside should these developments proceed.
1322 & Lot 6 Lonnavale Road, Lonnavale
Home to River’s Edge Wilderness Camping, this 18.96 hectare property with approximately 500 sqm of building improvements sold to a local investor via Expressions of Interest. The campground is securely leased to a proven operator generating net income of approximately $165,158 per annum, and comprises 54 configured sites, recently upgraded amenities and a natural riverside setting, zoned Rural.
447–449 Main Road, Glenorchy
Comprising three buildings across two titles totalling approximately 806 sqm on a 1,096 sqm site, this office investment sold to a local investor via Expressions of Interest. The property is leased to established tenants CVGT Employment, The Standard Burgers and JM Legal and Conveyancing, generating net income of approximately $133,237 per annum, and benefits from excellent exposure, strong passing traffic volumes and approximately 18 on-site car parks — a highly sought-after feature within Glenorchy’s commercial core.
Unit 14, 15 Stanton Place, Cambridge
A modern industrial unit of approximately 116 sqm, zoned Light Industrial, sold with vacant possession. The property offers quality modern amenities, including a clear-span warehouse with approximately 6m internal clearance and an electric roller door.
Unit 2, 6 Railway Court, Cambridge
A modern, high-clearance industrial unit of approximately 380 sqm on a 490 sqm site, zoned Light Industrial, sold to an owner-occupier with vacant possession via private treaty. The property features full-height glazed showroom frontage, rear roller door access and a flexible open-plan layout.
North
81 High Street, Campbell Town
A retail property of approximately 286 sqm on a 1,032 sqm site sold with vacant possession. The property offers a generous open-plan layout plus café area for flexibility, including approximately 170 sqm of versatile commercial space, alongside a modern two-bedroom home adjoining the gallery.
69–73 Elizabeth Street, Launceston
A retail showroom on a 986 sqm site with a large carpark, sold off-market to an owner-occupier with vacant possession. The property is positioned on a corner near other well-known retail outlets.
3 Waterworth Lane, Newstead
A 6,565 sqm landholding sold off-market to a local investor with vacant possession. The sizeable building area has been fully refurbished to an extremely high standard, with networking and AV services, air conditioning, partitioning and other base building services including a brand-new gymnasium and auditorium.
58–60 Paterson Street, Launceston
A 746 sqm landholding sold off-market to a local developer with vacant possession. Formerly used as a car rental space, the property offers a large development area at the rear and occupies a prime position on Paterson Street.
Unit 6/139–143 Hobart Road, Kings Meadows
A premium, high-exposure dual-tenanted retail investment of approximately 445 sqm sold at auction to a local investor. The property is leased to Liv Eat on a brand-new 15-year lease with two further 10-year options through to 2061, and to Bloom Nail & Spa on a 5-year net lease to 2030 with a further 5-year option to 2035, generating combined net income of approximately $162,781 per annum plus GST.
242 Charles Street, Launceston
A mixed hospitality and residential investment of approximately 190 sqm on a 284 sqm site, zoned Urban Mixed Use, sold to a local investor. The ground floor is occupied by long-standing Launceston operator Café Mondello, while three self-contained boutique residential apartments are positioned to capture sustained demand from medical staff, business travellers and visitors.
293 Gravelly Beach, Gravelly Beach
A renovated freehold retail building of approximately 58 sqm on a 139 sqm site, sold with vacant possession. The property is currently owner-occupied by homewares, plant and gift retailer My Tasmanian Home, presenting a high-exposure commercial opportunity in the heart of Gravelly Beach.
13 Herbert Street, Invermay
A light industrial property comprising approximately 575 sqm of flexible warehouse and office space on a 1,007 sqm site, currently configured as two separate tenancies. The property is partially leased, with a secure 5+5-year lease in place on the front tenancy.
7–17 Thistle Street, South Launceston
An industrial property of approximately 3,000 sqm on a 0.97 hectare site, zoned Commercial, sold with vacant possession. The property offers quality hardstand areas throughout, ideally suited to transport operators, trade-based businesses, logistics users or occupiers requiring substantial laydown and storage space.
297 Invermay Road, Invermay
A quality fast-food investment of approximately 204 sqm on an 860 sqm site, with onsite parking. The property has a strong letting history, operating as Fraggle’s Fish n Chips since 2015 and as a takeaway food outlet since the 1980s, generating net rent of approximately $50,458 per annum excluding GST.
143 Wellington Street, Launceston
A retail property formerly occupied by K&K Enterprises, comprising approximately 519 sqm of building area on a 1,095 sqm site, sold with vacant possession to an owner-occupier via private treaty. The improvements include an internal mezzanine of approximately 143 sqm and a rear garage of approximately 146 sqm, zoned Commercial.
217 Invermay Road, Invermay
A retail property formerly home to Cooper Automotive, comprising approximately 307 sqm of building area on a 782 sqm site, zoned Local Business, sold with vacant possession to an owner-occupier via private treaty. The well-presented, immaculately maintained improvements are complemented by on-site parking for 10-plus vehicles.
64 York Street, Launceston
An office property of approximately 320 sqm on a 547 sqm site, zoned Urban Mixed Use, currently occupied by a radiology clinic and a government-funded counselling service operator. Following rent increases in August, net rent is approximately $71,000 per annum plus GST. The property comprises two separate buildings plus accommodation for nine cars, including two undercover.
7 King Street, Scottsdale
A 741 sqm landholding with approximately 180 sqm of improvements, formerly used as a BP service station, sold to a local developer with vacant possession. The property features a spacious showroom with an adjoining workshop and external access toilets.
North West
1 – 3 Anglesea Street, Wivenhoe
An expansive 8,739 sqm landholding incorporating two warehouse facilities totalling 1,403 sqm*. Fully leased to three tenants and delivering a WALE of approximately 2.11 years, the asset traded on an initial yield of approximately 6.15%.
27 Reibey Street, Ulverstone
A retail shopfront of approximately 146 sqm on a 185 sqm site, with an existing butcher and cool rooms at the rear. The property is secured by a well-established local butchery tenancy through to 2030, with a further 5-year option to extend.
2–28 Mount Hicks Road, Wynyard
A substantial 8.91 hectare landholding within the coastal township of Wynyard sold to a local developer with vacant possession. The property benefits from approval for a 78-lot residential subdivision with associated public open space.
11A Wiseman Street, Shorewell Park
Shorewell Plaza, a neighbourhood retail centre of approximately 1,698 sqm, sold to an interstate investor via Expressions of Interest. The only centre of its kind servicing the surrounding residential catchment, the property is underpinned by a strong mix of essential service and convenience-based tenants including IGA, BWS, Viva Energy, a pharmacy and community-based occupiers, generating net income of approximately $368,326 per annum plus GST and outgoings with a WALE of approximately 2.19 years.
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.