October was another strong month for Tasmania’s commercial property market, with transaction activity spanning industrial, retail, office, and development assets. Buyer demand remained resilient, led by local and interstate private investors, while large-scale institutional activity underscored confidence in Tasmania’s ongoing commercial growth.
The South recorded the highest level of sales activity, highlighted by the sale of the former K&D Hardware site at 103 Melville Street & 159–163 Harrington Street, Hobart, which sold to a developer for in excess of $30 million. The 11,799sqm commercial site was secured with a short-term leaseback arrangement, positioning it for future large-scale redevelopment.
Other key transactions included 164 Macquarie Street, Hobart, a three-level heritage office and retail building sold to a local investor, and 4 Heathfield Avenue, Hobart, an office building leased to HF Construction Group generating $144,000 per annum.
164 Macquarie Street, Hobart
Industrial assets remained in high demand, with 14 Hull Street, Glenorchy sold leased to WD Bryan Joinery, and 4/3 Abernant Way, Cambridge changing hands with a new 5+5-year lease.
Development and land sales were again active, including 43 Russell Road, Claremont, a 17.34ha site approved for 76 residential lots, and 1/280 Bicheno Street, Clifton Beach, leased long-term to the Commonwealth of Australia.
In Launceston, buyer demand remained steady for smaller office and retail assets, with 195 Brisbane Street and 13 Quadrant Mall selling to local investors. Development interest also continued, with 30 Gilmore Street and 91 Cormiston Road, Riverside attracting local and mainland enquiry.
Investment confidence remained strong in the North West, with 100 Alexander Street, Shearwater selling at auction for $3.745 million on a 5.28% yield, leased to United Petroleum under a 20-year triple net lease. 44–52 Stewart Street, Devonport also transacted, leased to Zap Fitness on a long-term tenancy.
100 Alexander Street, Shearwater
Key Observations
- Industrial and development assets continue to dominate market activity across Greater Hobart.
- Yields remain firm between 5% and 7%, reflecting sustained investor confidence.
- Owner-occupiers and private investors continue to underpin demand across all regions.
- Regional retail and service investments maintain strong buyer interest, particularly where secure, long-term tenants are in place.
South
52 Marys Hope Road, Rosetta
A fully leased retail property generating more than $85,000 per annum, comprising a commercial café, restaurant, and two residential tenancies.
164 Macquarie Street, Hobart
A three-level heritage retail and office building sold with vacant possession to a local investor. Zoned Central Business and located within Hobart’s vibrant commercial core.
44 Lincoln Street, Lindisfarne
A flexible 241sqm retail or mixed-use property offering showroom and office potential. Sold with vacant possession.
4 Heathfield Avenue, Hobart
A 403sqm office building on 469sqm land, leased to HF Construction Group on a short-term two-year lease from May 2025, generating $144,000 gross per annum. Zoned Urban Mixed Use.
55 South Arm Road, Rokeby
A 223sqm light industrial property on 2,023sqm land sold with vacant possession.
43 Russell Road, Claremont
A 17.34ha residential development site with an existing dwelling and approval for 76 lots. Zoned General Residential.
1/280 Bicheno Street, Clifton Beach
An 8,000sqm landholding leased to the Commonwealth of Australia until 2033, with two five-year options. The site is used as a launch facility for weather balloons, providing long-term income security.
14 Hull Street, Glenorchy
A 3,764sqm industrial asset leased to WD Bryan Joinery until 2026 with options. Includes warehouse, mezzanine, and office areas totalling approximately 1,400sqm.
103 Melville Street & 159–163 Harrington Street, Hobart
The former K&D site comprising 11,799sqm of commercial land was sold to a developer with a short-term leaseback providing holding income.
4/3 Abernant Way, Cambridge
A 254sqm light industrial unit sold with a new 5+5-year lease at a net rent of $49,000 per annum + GST.
47 Wilmot Road, Huonville
A 610sqm retail building on 2,360sqm land, formerly trading as The Red Shed, sold with vacant possession.
North
195 Brisbane Street, Launceston
A 154sqm office property, previously operating as a well-known beauty clinic, sold with vacant possession. Zoned Urban Mixed Use.
30 Gilmore Street, Launceston
A 0.67ha light industrial development site with a planning package in place for warehouse construction. Sold with vacant possession.
192 Charles Street, Launceston
A refurbished heritage office building on 252sqm land, sold with vacant possession. Zoned Urban Mixed Use.
91 Cormiston Road, Riverside
A 1.34ha general residential development opportunity comprising 30 brick and tile units with additional land suitable for redevelopment (STCA).
13 Quadrant Mall, Launceston
A 274sqm retail investment comprising three tenancies generating a total net income of $76,094 per annum. Zoned Central Business.
Northwest
100 Alexander Street, Shearwater
A prime fuel investment sold at auction to a private investor on a 5.28% yield. The 5,951sqm site is leased to United Petroleum on a 20-year triple net lease, with fixed 3.5% annual rent increases and net income of approximately $197,620 per annum + GST.
44–52 Stewart Street, Devonport
An 811sqm retail property leased to Zap Fitness on a 7-year lease. Sold to an interstate investor by private treaty.
East Coast
12 Addison Street, Swansea
A 440sqm tourism and retail property on 2.36ha land, previously operating as Kate’s Berry Farm, sold on a walk-in walk-out basis to an interstate owner-occupier. Zoned Rural Resource.
*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.