August delivered another strong month of commercial property activity across Tasmania, with transactions recorded in all three regions. Demand was seen across all sectors, with investors favouring secure leases while developers and owner-occupiers targeted value-add and future-use opportunities.
The South saw the highest level of activity, particularly in the industrial and development sectors. Highlights included the $5.705 million sale of 132 Mornington Road, Mornington, a government-leased warehouse investment transacting on a 5.22% yield, and 47 Crooked Billet Drive, Bridgewater, leased to Cleanaway on an 8-year WALE, sold on a 5.6% yield. Several industrial sites, including Unit 4, 3 Railway Court & 7-9 Cherokee Drive in Cambridge as well as 19 Greenbanks Road, Bridgewater, were snapped up with vacant possession, underscoring continued owner-occupier demand.
The North recorded solid results in both industrial and hospitality assets. Notable transactions included 5 Kiln Court, St Leonards, sold for $4.88 million with a lease to Solstice Energy producing $299,161 per annum net, and 13 Brisbane Street, Launceston, home to the Commodore Regent Hotel, which changed hands for the first time in 15 years.
In the Northwest, secure retail investments were in focus. 45–47 Rooke Street, Devonport, a recently refurbished NAB branch, sold at auction for $2.02 million on a 5.61% yield, while 24 Shearwater Boulevard, Shearwater was acquired by a local investor. Regional strip retail continued to appeal, with 15 Agnes Street, Rosebery, producing a strong 9.3% gross return.
Mixed-use and smaller retail properties also transacted in Ulverstone and Burnie, reflecting steady investor confidence in the region’s fundamentals.
Key Observations
- Industrial and logistics assets remain the backbone of activity, with both institutional-grade investments and smaller owner-occupier warehouses attracting demand.
- Retail investments with secure leases continue to command competitive yields.
- Development site interest is returning in both metropolitan and regional centres, reflecting confidence in Tasmania’s long-term growth.
- Yields remain firm, with prime investments trading in the 5–7% range depending on tenant profile and location.
South
47 Crooked Billet Drive, Bridgewater
The 1,349sqm industrial facility on 2,078sqm land was sold to a local investor on a 5.7% yield. Leased to Cleanaway (CWY) on a long-term lease with WALE of approximately 8 years.
334 Elizabeth Street, North Hobart
An 818sqm office property was sold to a local investor on a 7% yield. Fully leased to three tenants with a WALE of 3.2 years.
Units 1–12, 11 Arnold Street, Glenorchy
A 12-unit strata-titled complex was acquired by a mainland syndicate on a 6.5% gross yield.
1686 Channel Highway, Margate
The 575sqm industrial property on 2,400sqm land was sold subject to a short-term lease, providing opportunities for future occupation. Zoned Local Business.
7–9 Cherokee Drive, Cambridge
A 0.75ha light industrial-zoned development site was sold with vacant possession.
83 Swan Street, Bagdad
The 413ha agricultural and rural-zoned property was sold with vacant possession to a mainland based developer. Currently operated as a farm with long-term development potential.
18–20 Gepp Parade, Derwent Park
A 404sqm light industrial facility on 1,856sqm land was sold with strong holding income from two residential apartments producing $800 per week.
132 Mornington Road, Mornington
The 2,654sqm industrial asset on 1.23ha was sold at auction to a local investor for $5.705 million. Fully leased to Tasmanian Government departments, returning $297,680 per annum net on a 5.22% yield.
1 & 2, 90 Clarence Street, Bellerive
A 255sqm office building on 279sqm of land was sold with vacant possession.
198 East Derwent Highway, Lindisfarne
The former Uniting Church with adjoining 5-bedroom home was sold with vacant possession. The 316sqm building sits on a 1,032sqm site. Zoned Community Purpose.
Unit 4, 3 Railway Court, Cambridge
A brand-new 125sqm industrial unit was sold with vacant possession. Zoned Light Industrial.
172–174 Main Road, Moonah
The 486sqm industrial building on 3,096sqm land was sold as a dual-lease freehold, producing gross rental income of $170,954 per annum + GST.
19 Greenbanks Road, Bridgewater
The 1,560sqm industrial facility on 0.55ha land was sold to an owner-occupier with vacant possession. Zoned General Industrial.
North
63 Main Road, Exeter
The 3,587sqm local business-zoned development site was sold with vacant possession.
5 Kiln Court, St Leonards
A 1,530sqm light industrial facility was sold for $4.88 million. Leased to Solstice Energy with a remaining lease of 3.66 years and a further 5-year option. Net income $299,161 per annum + GST.
6 King Street, Scottsdale
The 150sqm retail property on 2,102sqm land was sold with the business and freehold of Dorset Car and Dog Wash. Zoned General Business.
13 Brisbane Street, Launceston
The 2,245sqm Commodore Regent Hotel on 3,758sqm land was sold after being held for 15 years. Zoned Inner Residential.
48 Abbott Street, East Launceston
The 110sqm office property was sold with vacant possession. Zoned Local Business.
Northwest
45–47 Rooke Street, Devonport
The 691sqm retail property on 311sqm land was sold at auction for $2.02 million. Fully leased to NAB with fixed 4% annual increases. The property had recently undergone a $1.7 million tenant refurbishment and sold on a 5.61% yield, returning $113,198 per annum net.
35 Queen Street, West Ulverstone
The 88sqm retail property on 521sqm land was sold with a 5-year lease from 2020 and a further 5-year option. Zoned Local Business.
15 Agnes Street, Rosebery
The 514sqm retail property on 911sqm land sold fully leased. Includes a detached three-bedroom home at the rear, producing a gross return of 9.3%.
24 Shearwater Boulevard, Shearwater
A 364sqm retail property was sold to a local investor for an undisclosed price. The property is leased to Shearwater Health and Fitness Pty Ltd on a 5+5-year lease commencing February 2023.
Lot 30 Bravo Street, Wynyard
A vacant 2,140 sqm, ‘General Industrial’ development site fronting Goldie Steet was sold to a local owner occupier. The site forms part of a new industrial subdivision adjacent to the Burnie Regional Airport in Wynyard.
Unit 3, 11 Orchard Crescent, Spreyton
A brand new single story concrete tilt panel storage unit of approximately 198.8* sqm, with a strata area of approximately 311*sqm was sold to an owner occupier for $515,000.
*approximate
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.