May recorded strong and diverse transactional activity across Tasmania’s commercial property market, with sales spanning retail, industrial, office, development site, hospitality and medical sectors. Buyer demand remained broad, with local investors, owner-occupiers and interstate parties all active across the South, North and North West regions.
The South again led the state in transaction volume, particularly across the retail and industrial sectors. Retail investment activity was a standout, with several securely leased assets transacting in and around Hobart. Highlights included 22 Gepp Parade, Derwent Park, a fully leased multi-tenanted asset anchored by a craft brewery and cellar door café sold off-market to a mainland investor on a 6.50% yield, and 12 Salamanca Square, Battery Point, leased to the long-standing Machine Laundry Café, which sold to a local investor on a 5.25% yield. Character retail buildings along the Elizabeth Street CBD fringe also transacted, including 124 Elizabeth Street, leased to Ken Self Cycle Centre, and 343 Elizabeth Street, North Hobart, leased to Mulan Restaurant on a double-net covenant.
Hospitality and tourism assets featured prominently in the South, headlined by 27 Salamanca Place, Battery Point, an 1840 heritage building leased to Watermans Hotel with a ground-floor hospitality tenancy and eight short-stay studio apartments, returning approximately $305,007 per annum plus GST. Industrial demand remained firm, with owner-occupiers active across Cambridge, Derwent Park and regional sites, including 1350 Boyer Road, Boyer, a versatile light industrial site opposite the Boyer Paper Mill.
22 Gepp Parade, Derwent Park
The North recorded a balanced spread of retail, industrial, office and development site activity. Notable transactions included 115 Wellington Street, Launceston, a large-format retail showroom and warehouse leased to national retailer Fantastic Furniture returning approximately $361,000 per annum, and 167–169 Cambridge Street, West Launceston, an established service station leased to Roo Petroleum (operating as Shell) on a ten-year double-net lease. Fuel and convenience investments continued to attract interest, with the Ampol service station at 184 High Street, Campbell Town selling at auction to an interstate investor on a 5.38% yield, leased to Bonney Energy on a 20-year triple-net lease. Development land in Mowbray and South Launceston also transacted, reflecting confidence in northern growth corridors.
115 Wellington Street, Launceston
The North West saw steady demand for industrial and owner-occupier stock, including 13 Orchard Crescent, Spreyton, a modern high-clearance warehouse sold with vacant possession to an owner-occupier, and 64 Don Road, Devonport, a functional workshop on a generous landholding. Medical and consulting assets also featured, with 11a Gant Street, Lenah Valley, a modern healthcare facility, sold with a 10+10 year leaseback to leading Tasmanian disability services provider St.Giles.
Across all regions, securely leased investments with strong tenant covenants continued to draw competitive interest, while vacant possession opportunities appealed to owner-occupiers and value-add buyers. Yields generally held firm, ranging from the low-5% to low-7% bracket depending on lease profile and location.
Key Observations
- Securely leased retail investments remained the most actively traded sector, particularly across Greater Hobart and Launceston, with strong demand from both local and interstate investors.
- Fuel, convenience and service station assets attracted notable interest, supported by long-term net lease covenants to national operators.
- Industrial demand remained firm, with owner-occupiers prominent across Cambridge, Derwent Park and regional precincts.
- Development site activity continued across the South and North, reflecting ongoing confidence in strategic growth corridors.
- Yields generally ranged from the low-5% to low-7% bracket, depending on tenant covenant, lease term and location.
South
22 Gepp Parade, Derwent Park
A fully leased multi-tenanted retail and commercial asset comprising approximately 639 sqm of lettable area on a 1,123 sqm site, sold off-market to a mainland investor on a 6.50% yield. Leased to Brew Lab, Currawong Products and Sonic Syrup, the property generates a passing net income of approximately $172,401 per annum plus GST with a WALE of approximately four years. The asset comprises three architecturally designed industrial tenancies, including a craft brewery, commercial kitchen, licensed cellar door café/bar and upper-level function area.
12 Salamanca Square, Battery Point
A retail investment comprising approximately 98 sqm of building area on a 142 sqm site, sold to a local investor on a 5.25% yield following 49 enquiries. Leased to long-standing tenant Machine Laundry Café on a new secure five-year term, generating net income of approximately $87,903 per annum plus outgoings and GST.
343 Elizabeth Street, North Hobart
A two-level commercial building comprising approximately 231 sqm, sold to a local investor on a 6% yield following 59 enquiries. Leased to Mulan Restaurant, who have operated at the property for 14 years, with approximately 4.5 years remaining on the lease term on a double-net covenant. The asset generates net income of approximately $89,269 per annum with annual CPI rent increases. Amenities are featured on both levels, suiting continued hospitality use or future adaptation.
124 Elizabeth Street, Hobart
A character-filled mixed-use building comprising approximately 119 sqm on a 119 sqm site, sold to a local owner-occupier following 54 enquiries. Fully leased to Ken Self Cycle Centre, with a first-floor residential tenancy currently vacant. Located in Hobart’s thriving CBD fringe.
133–137a Sandy Bay Road, Sandy Bay
A two-level mixed-use building comprising approximately 352 sqm of building area on a 690 sqm site, sold to a local investor following 47 enquiries. The ground floor is fully leased with vacant second-floor residential accommodation. The site includes a separate two-level brick warehouse to the rear and on-site parking. Zoned General Business.
27 Salamanca Place, Battery Point
An 1840 heritage building comprising approximately 596 sqm of building area on a 440 sqm site, positioned directly on Salamanca Place. Leased to Watermans Hotel, with a ground-floor hospitality tenancy of approximately 440 sqm and eight short-stay studio apartments, generating net income of approximately $305,007 per annum plus GST.
Southgate Shopping Centre, 1 Station Road, Dover
A neighbourhood shopping centre comprising approximately 1,194 sqm of building area on a 1,686 sqm site, in a prominent, high-exposure town centre location. The centre comprises six established tenancies: an IGA Supermarket, Bendigo Bank, Australia Post, a pharmacy, a laundromat and a café.
Glenowan, 3 Eady Street, Glenorchy
A circa 1920 character office property comprising approximately 174 sqm of building area on a 640 sqm site, sold with vacant possession and offered to the market for the very first time. Zoned Commercial.
50 Victoria Street, Hobart
A functional two-storey brick office building comprising approximately 253 sqm, constructed in 1914, sold with vacant possession. Benefits from flexible Central Business zoning.
Units 9 & 10, 1 Kyeema Place, Cambridge
Two industrial units comprising approximately 115 sqm of building area on an 87 sqm site, offered subject to short-term leases with car parks vacant. Located within the established Cambridge industrial precinct.
Unit 1, 6 Railway Court, Cambridge
A modern high-clearance industrial unit comprising approximately 380 sqm, sold with vacant possession to a local owner-occupier. The unit features full-height glazed showroom frontage, rear roller door access and flexible open-plan layouts suited to trade retail, bulky goods, showroom display or light industrial use (STCA).
2/121 Gormanston Road, Derwent Park
A light industrial strata unit with a strata area of approximately 149 sqm, sold with vacant possession. The clear-span workshop features approximately 5.1m internal clearance, an electric roller door and shared on-site parking.
1350 Boyer Road, Boyer
A versatile light industrial site comprising approximately 3,751 sqm of land, sold with vacant possession. Positioned opposite the Boyer Paper Mill.
13 Woodrieve Road, Bridgewater
A General Industrial-zoned development site comprising approximately 1,762 sqm, sold with vacant possession to a local owner-occupier by private treaty. Strategically positioned within the Brighton Transport Hub with seamless connectivity to the Midland Highway and key arterial networks servicing Greater Hobart.
11a Gant Street, Lenah Valley
A modern, high-quality healthcare facility comprising approximately 1,545 sqm of building area on a 1.51-acre site, substantially redeveloped circa 2011. Sold with a 10+10 year leaseback to leading Tasmanian disability services provider St.Giles at a commencing net rental of approximately $425,900 per annum plus GST. Complemented by 48 car parking bays and extensive outdoor areas.
North
115 Wellington Street, Launceston
A single-level large-format retail building comprising approximately 2,318 sqm on a 3,866 sqm site, leased to national retailer Fantastic Furniture with a net rental income of approximately $361,000 per annum and lease expiry in November 2027 with options through to 2037. The property comprises a split-level front showroom of approximately 1,778 sqm and a rear warehouse of approximately 540 sqm, with 19 on-grade car parks.
167–169 Cambridge Street, West Launceston
An established service station and mechanic workshop comprising approximately 224 sqm of building area on a 1,865 sqm corner site. Leased to Roo Petroleum, operating as Shell, on a ten-year double-net lease to 2030 plus one further ten-year option through to 2040. Net income of approximately $148,104 per annum plus GST.
Ampol, 184 High Street, Campbell Town
A brand-new fuel station on an expansive 4,098 sqm site, sold at auction to an interstate investor on a 5.38% yield following 14 enquiries. Leased to Bonney Energy, operating as Ampol, on a 20-year triple-net lease, returning net income of approximately $78,000 per annum plus GST. Zoned Commercial.
Legana Car Wash, 3 Wrankmore Court, Legana
A freehold and business sale comprising approximately 491 sqm of building area on a 3,160 sqm site, sold to an investor by private treaty on a 7% yield. The site operates as Legana Carwash, a high-yielding, highly automated operation. Zoned Light Industrial.
7 Legana Park Drive, Legana
A light industrial facility on approximately 3,400 sqm of land, leased on a three-year lease with a three-year option at a commencing annual rental of $103,000 plus outgoings and GST. A caretaker’s cottage is currently rented at $350 per week ($18,200 per annum). The high-bay, clear-span workshop features four electric roller doors.
Lot 2, 67–75 Paterson Street, Launceston
A well-located strata office investment comprising approximately 382 sqm, situated on the ground floor of Exa House in the core of the Launceston CBD. Secured by a lease to JMG Engineering, generating net income of approximately $104,671 per annum with a WALE of 4.77 years.
298–308 Invermay Road, Mowbray
A prime development land parcel of approximately 3,045 sqm, sold with vacant possession. Positioned within Mowbray’s growth corridor and zoned Urban Mixed Use.
188–190 Wellington Street, South Launceston
A development site of approximately 1,450 sqm comprising two existing buildings with over 70 metres of frontage, zoned Commercial. The front office building is held under a short-term lease to the Australian Childhood Foundation, with the rear warehouse and first-floor flat offered with vacant possession.
10 Wellington Street, South Burnie
A versatile showroom/warehouse comprising approximately 440 sqm of building area on a 539 sqm site, sold with vacant possession to an owner-occupier following 21 enquiries.
North West
13 Orchard Crescent, Spreyton
A modern (circa 2024) high-clearance metal-clad warehouse comprising approximately 343 sqm of building area on a 2,478 sqm site, sold with vacant possession to an owner-occupier following 30 enquiries. The property features an expansive 149 sqm loading canopy spanning the length of the warehouse, plus a secondary 18 sqm awning at the front. Zoned Light Industrial.
64 Don Road, Devonport
A functional industrial workshop comprising approximately 265 sqm of building area on a generous 884 sqm landholding, sold with vacant possession. Zoned Commercial.
*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.