September was another active month across Tasmania’s commercial property market, with transactions recorded in every region and across a wide range of asset classes. Demand remained diverse, with local investors, owner-occupiers, and interstate buyers targeting both secure income-producing investments and development opportunities.
The South recorded significant activity in both industrial and retail assets. Standouts included the large format centre at 10 Derwent Park Road, anchored by Supercheap Auto, RSEA, Baby Bunting, and JMC, which changed hands for circa $22 million on a 6.15% yield and Unit 3, 11 Lampton Avenue, Derwent Park, being sold off-market on a 5.45% yield to a private investor.
10 Derwent Park Road, Derwent Park
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.
Retail investment demand remained strong, with 34–38 Albert Road, Moonah, leased to Choices Flooring, selling to a mainland investor on a 5.7% yield, while 352 Macquarie Street, South Hobart secured a long-term lease renewal with Magnolia Flowers prior to sale. Development sites also drew attention, with 454 Elizabeth Street, North Hobart and 21 Abernant Way, Cambridge transacting with future upside potential.
Medical and office assets continued to appeal to secure-income buyers, including 488 Main Road, Montrose and 57 Burnett Street, New Norfolk, both long-leased to VetPartners with options extending to 2037.
The North featured a balance of industrial and retail activity. The headline transaction was 71 Boland Street, Launceston, acquired for $4 million and leased to Symbion Pharmaceuticals (EBOS Group) on a long-term covenant. Retail highlights included 82 George Street, Launceston, leased to Coal River Farm on a new 5+5-year lease, and 2/118 Hobart Road, Kings Meadows, a strata retail investment sold with a secure lease in place.
Mixed-use and development sites also changed hands, such as 68 & 70 Gleadow Street, Invermay, acquired with existing holding income, and 101 Stanley Street, Summerhill, which combined commercial tenancies with residential accommodation.
The North West saw activity in office, industrial, and development assets, with demand spread across Devonport, Burnie, Wynyard, and Spreyton. Notable transactions included 93–95 Wilson Street, Burnie, sold on a 7.19% yield fully leased to Westpac, and 13 & 15 Bay Drive, Quoiba, a fully let storage complex sold on a 7.27% yield.
93-95 Wilson Street, Burnie
Development sites around Wynyard Airport also moved, with Lot 34 & 35 Bravo Street selling to an interstate occupier and Lot 30 Bravo Street acquired by a local owner-occupier. Smaller industrial units remained attractive to local buyers, such as Unit 3, 11 Orchard Crescent, Spreyton, a brand-new tilt-panel warehouse sold with vacant possession.
Key Observations
- Industrial assets remain the strongest performing sector, attracting both institutional investors and owner-occupiers
- Retail demand is underpinned by national tenants (Choices Flooring, NAB, Coal River Farm) with yields holding firm in the 5–7% range
- Medical and veterinary operators continue to be sought-after covenant tenants, offering long-term security
- Development sites in strategic growth corridors (Cambridge, Invermay, Wynyard) are generating strong local and mainland interest.
South
Unit 3, 11 Lampton Avenue, Derwent Park
An industrial asset sold off-market to a local private investor on a 5.45% yield. The property is tenanted by Motion on a 5-year net lease, returning $166,341 p.a. + GST.
322 Macquarie Street, Hobart
A 262sqm medical office was acquired by a local GP owner-occupier. Sold via Expressions of Interest.
322 Macquarie Street, Hobart
21 Abernant Way, Cambridge
A 2,917sqm industrial land parcel was purchased by a local owner-occupier with vacant possession.
Unit 4, 121 Gormanston Road, Derwent Park
A 255sqm industrial unit was acquired by Bay Hire as additional surge space. Sold by private treaty.
10 Derwent Park Road, Derwent Park
A large format retail centre was sold off-market to a private family on a 6.15% passing yield. Anchored by strong national tenants including Supercheap Auto, RSEA, Baby Bunting, and JMC.
454 Elizabeth Street, North Hobart
A 371sqm property on 3,280sqm of land sold with development potential. Zoned Mixed Use.
488 Main Road, Montrose & 57 Burnett Street, New Norfolk
Both properties which are leased to national veterinary operator VetPartners were sold in one line to a local investor.
Unit 1000, 1 Kyeema Place, Cambridge
A 540sqm landholding with 13 car parks, offered largely leased with a mix of monthly and short-term occupancies.
223–225 Campbell Street, North Hobart
A 225sqm warehouse on a 316sqm land parcel was sold off-market. City fringe location with on-site parking.
34–38 Albert Road, Moonah
A retail property sold to a mainland investor on a 5.7% yield. Occupied by Choices Flooring, a long-term national tenant, on a new 7-year lease returning $110,000 p.a. + GST. 10 Offers received.
34-38 Albert Road, Moonah
352 Macquarie Street, South Hobart
A retail investment sold fully leased to Magnolia Flowers, a long-standing local operator. A new long-term lease was recently secured.
1 & 2, 493 Main Road, Montrose
A 243sqm office property, formerly occupied by PRD Real Estate, was sold with vacant possession and included 12 on-site car parks. Heritage listed.
52 Safety Cove Road, Port Arthur
A tourism asset previous operating as Port Arthur Villas, comprises 17 accommodation units plus a substantial 3-bedroom home, reception, and laundry facilities was sold to an interstate investor.
North
34 King Street, Scottsdale
An 820sqm retail building on 905sqm land sold with vacant possession. Zoned General Business.
82 George Street, Launceston
An 85sqm retail property leased to Coal River Farm on a 5+5-year lease from April 2024. Located in a popular Launceston CBD strip.
71 Boland Street, Launceston
A 1,580sqm industrial facility on 3,522sqm land sold leased to Symbion Pharmaceuticals (a subsidiary of EBOS Group), with net rent of $245,335 p.a. excl. GST.
68 & 70 Gleadow Street, Invermay
Two adjoining allotments of 1,178sqm, including an existing weatherboard house leased at $450/week, sold as a development site. Zoned Light Industrial.
101 Stanley Street, Summerhill
A mixed-use property comprising two commercial tenancies and a four-bedroom residence, fully leased.
2/118 Hobart Road, Kings Meadows
An 80sqm retail property was sold to an investor with a secure 5-year lease and further option in place.
72 Macquarie Street, George Town
A 196sqm office property sold off-market to an investor on a 6% yield. Leased to HR+ operating as HEAART.
73 Macquarie Street, George Town
A 172sqm retail property was sold to an investor on a 7.3% yield. Leased to a local butcher, generating $22,754 p.a.
90 Pioneer Drive, Mole Creek
The Mole Creek Hotel, set on 0.65ha, was acquired by an overseas owner-operator. A long lease remains in place on highly favourable terms for the tenant.
Mole Creek Hotel, 90 Pioneer Drive, Mole Creek
Northwest
Lot 34 & 35 Bravo Street, Wynyard
A 6,163sqm general industrial development site sold to an interstate occupier. Located within the Bravo Street subdivision adjoining Burnie Regional Airport.
93–95 Wilson Street, Burnie
A 654sqm office investment sold to a local investor on a 7.19% yield. Fully leased to Westpac until June 2027 with an option to 2032, returning $98,248 p.a. net.
13 & 15 Bay Drive, Quoiba
A 1,559sqm industrial storage facility comprising 19 units was sold fully leased to 12 tenants. Net income $149,105 p.a. excl. GST, reflecting a 7.27% yield.
13 & 15 Bay Drive, Quoiba
Lot 30 Bravo Street, Wynyard
A 2,140sqm vacant general industrial site sold to a local owner-occupier.
Unit 3, 11 Orchard Crescent, Spreyton
A brand-new 199sqm concrete tilt-panel storage unit was sold with vacant possession.
*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.