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Tasmanian Commercial Market Wrap – July 2025

Tasmanian Commercial Market Wrap – July 2025

July saw a diverse range of commercial property transactions across Tasmania, with activity spanning industrial, retail, hospitality, office, and development land. Buyer demand remained robust, driven by local owner-occupiers, interstate investors, and developers, with yields in well-leased assets holding firm.

The South recorded high turnover across industrial and retail sectors, particularly in Cambridge, which saw multiple light industrial units change hands, including Unit 8, 1 Corvalis Lane and 7/6 Kyeema Place, both sold with vacant possession, and 4/18A Hull Street, sold on a secure 7-year lease. Significant land sales included Lot 3 and Lot 14 Cove Hill Road, Bridgewater and 10 Spark Drive, Cambridge, reflecting continued developer interest in growth precincts. Retail and mixed-use activity remained steady, with the $900,000 sale of 87 Newdegate Street, West Hobart on a 6% yield and 88 Central Avenue, Derwent Park, secured on a long-term lease to 2030.

The North recorded a mix of leased investments and vacant possession opportunities. Hospitality highlights included the sale of the Commodore Regent Motel, 13 Brisbane Street, Launceston on a “Vacant Possession” basis, and the sale of the Westbury Hotel, the latter with a strong lease profile until 2029 and options through to 2049. Industrial sales were led by Warehouse 7, 8 Trotters Lane, Prospect, sold with a 12-month lease in place, and 21 Westbury Road, South Launceston, sold vacant. Retail activity was centred on 148 Invermay Road in a prime commercial hub and Unit 2, 6 Innes Street, Launceston, sold to a local investor on a long-term lease returning $150,000 p.a.

The North West saw steady demand for office, retail, and development sites. Notable transactions included 11–17 Stewart Street, Devonport (7.48% yield) and 105–105A Reibey Street, Ulverstone (7.20% yield). Industrial and development activity featured prominently, with 147 Old Surrey Road, Havenview—a large, purpose-built processing facility—changing hands, and 2 Zara Court, Stony Rise sold to a local owner-occupier

Key Observations

  • Industrial assets remain the most active sector, driven by a mix of investor and owner-occupier demand.
  • Long-leased retail and office investments continue to attract competitive yields, particularly with national tenants.
  • Development sites in growth corridors are in strong demand from both local and national developers.

Overall, July demonstrated a healthy balance of leased and vacant opportunities being transacted, with pricing supported by ongoing local and interstate buyer confidence.


South

27 Rowbottoms Road, Granton – The 706sqm hospitality property on 1.87ha was sold to a local owner-occupier for $2.3 million. The asset offers estimated rental returns of up to $1,840/week or $360/night per unit.

Lot 3, 110 Cove Hill Road, Bridgewater – The 3,543sqm development site was sold with vacant possession to a local developer via private treaty.

Lot 14, 110 Cove Hill Road, Bridgewater – The 0.6ha development site was sold with vacant possession.

10 Spark Drive, Cambridge – A 3,451sqm landholding was sold with vacant possession to a local owner-occupier via private treaty.

Unit 8, 1 Corvalis Lane, Cambridge – The 301sqm light industrial warehouse on 315sqm land was sold with vacant possession to a local owner occupier via private treaty.

39 Cambridge Road, Bellerive – A 199sqm commercial building on a 623sqm strategic corner site was sold with vacant possession. Zoned General Business.

130 Murray Street, Hobart – The 277sqm retail property on 288sqm land was sold with vacant possession. Zoned Central Business.

4 Lockheed Place, Cambridge – A modern industrial property built in 2023 was sold with a strong net income of $155,000 per annum, with the tenant paying all statutory outgoings and building insurance.

87 Newdegate Street, West Hobart – A 192sqm retail and residential investment on 369sqm land was sold to an interstate investor for $900,000 on a 6% yield. Fully leased to a long-standing hair salon and a separate residential tenancy.

1/442 Elizabeth Street, North Hobart – A 309sqm office property on 736sqm land was sold with vacant possession. Includes a self-contained bedsit flat at the rear.

88 Central Avenue, Derwent Park – The 353sqm retail/commercial property on 605sqm land is leased commercially to January 2030 with a 5+5-year option, and residentially to September 2025.

4/18A Hull Street, Glenorchy – A 380sqm strata-titled light industrial warehouse on 567sqm land was sold with a 7-year lease to May 2030, returning $53,728 per annum + GST + outgoings.

7/6 Kyeema Place, Cambridge – The 168sqm light industrial unit on 237sqm land was sold with vacant possession.

5/14 Cessna Way, Cambridge – The 205sqm industrial unit on 331sqm land was sold with vacant possession.

216–218 Liverpool Street, Hobart – A 285sqm heritage-listed retail property on 142sqm land was sold comprising two commercial tenancies and one residential tenancy. Zoned General Business.

189 Liverpool Street, Hobart – The 752sqm retail property on 1,152sqm land was sold with vacant possession. Includes a building permit for four self-contained apartments above the existing retail space.

14 Sunderland Street, Moonah – The 240sqm light industrial property on 612sqm land comprises a residence leased until December 2025 at $535/week and a vacant warehouse suitable for new tenancy in a low-vacancy area.


North

Commodore Regent Motel, 13 Brisbane Street, Launceston. Sale of freehold and business. 43 rooms, together with redevelopment prospects. Dominant position overlooking famed City Park and two blocks from Launceston CBD.

Warehouse 7, 8 Trotters Lane, Prospect – The 455sqm light industrial warehouse on 440sqm land was sold with a 12-month lease from June 2025 returning $49,500 per annum + GST + outgoings.

Westbury Hotel, 107 Meander Valley Road, Westbury – The 2,268sqm hospitality property was sold with a net rent of $114,000 per annum on a lease through to June 2029, with five-year options to 2049.

21 Westbury Road, South Launceston – A 350sqm light industrial facility was sold with vacant possession.

43 Dry Street, Invermay – The 181sqm property was sold with vacant possession for $590,000. Zoned General Residential.

Lot 2 Old Aerodrome Road, Low Head – The 1.62ha rural resource-zoned development site was sold with vacant possession.

148 Invermay Road, Invermay – A 330sqm retail/commercial building on 462sqm land was sold for $980,000. Located in a prime commercial hub.

Unit 2, 6 Innes Street, Launceston – The 503sqm retail/commercial property was sold to a local investor with a renewed 5-year lease to a long-term tenant, returning $150,000 per annum + GST.

9 Goodman Court, Invermay – A 1,048sqm light industrial building on 2,081sqm land was sold leased to Armitage Auctions on a long-term lease from 2012, returning $119,803 per annum + GST (subject to CPI increase in 2025).

185–185a Wellington Street, Launceston – The 252sqm local business-zoned development site was sold with vacant possession.

22 Elizabeth Street, Launceston – A 230sqm office property was sold with vacant possession. Zoned Urban Mixed Use.


Northwest

11–17 Stewart Street, Devonport – A 736sqm office property on 1,004sqm land was sold to an interstate investor on a 7.48% yield. Fully leased with a WALE of 2.66 years.

105–105A Reibey Street, Ulverstone – The 141sqm retail property was sold off-market to an interstate investor on a 7.20% yield, with a WALE of 2.75 years. Net income $35,100 per annum + GST.

2 Zara Court, Stony Rise – A 4,152sqm light industrial development site was sold with to a local owner-occupier at an undisclosed price.

147 Old Surrey Road, Havenview – The 1,972sqm general industrial facility on 1ha land was sold to a local investor. Formerly home to Betta Milk’s dairy production and distribution facility.


*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.

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