Raine and Horne Commercial

TAS - Hobart Leslie Simpson of Commercial Hobart says yields across the Hobart area range from 4.5-5.5% for retail and 4.75- 5.75%. For industrial property, which is reflective of the national trend towards industrial. For office space, yields are 5.5-6.5%. He notes the market is being driven by “low interest rates, the nature of Tasmania as a COVID-safe haven, and the strong Tasmanian economy.” Reflecting these factors, vacancy rates are low in Hobart across all sectors of the market. Industrial space is seeing a vacancy rate of 6-7%, rising to 6-8% for retail property, however in the office market the vacancy rate is a very low 5.1%. Leslie reports a significant rise in demand for industrial property, and explains, “Hobart has limited commercial industrial stock at present, and with very strong industrial demand we see a significant land shortage looming.” Recent sales secured by the Commercial Hobart team include 349 Elizabeth Street, North Hobart, which sold for $3.1 million representing as 5% yield. The retail property comprises 402sqm of floor space on a 399sqm site. Vacant industrial land at 7-9 Cherokee Drive, Cambridge was sold for $1.5 million, representing $200 per sqm. A city fringe showroom at 110 Argyle Street, Hobart was leased for $195,000 per annum plus outgoings. 35 - Leslie Simpson leslie.simpson@rhc.com.au