Tasmania | 35 Leslie Simpson of Commercial Hobart says current average yields in Hobart range from 4.5-5.5% for retail property, through to 4.75%- 5.25% on industrial space and 5-6% for office property. Vacancy rates are low in Hobart. Office property has a vacancy rate of just 2.7%, rising to 5-6% for industrial space and 6-8% for retail properties. Leslie explains, “Low interest rates, strong demand for industrial land and assets, a multiplier effect from the housing boom, and a strong Tasmanian economy are all driving the commercial market in Hobart.” He adds, “Sustained strong industrial demand and limited land throughout all areas of greater Hobart has resulted in exceptional growth of the industrial market in greater Hobart.” As a guide to the strength of the market, the team at Commercial Hobart managed the sale of a warehouse complex at 2 Cessna Way, Cambridge, which sold off the plan for $3.5 million. A retail warehouse complex at 6 Mertonvale Circuit, Kingston sold for $1.775 million (4.7% yield), and an office building at 447 Main Road, Glenorchy was leased for $80,000 per annum plus outgoings. Leslie Simpson leslie.simpson@rhc.com.au Hobart
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