Tasmanian Business Reporter February 2017

Tasmanian Business Reporter - FEBRUARY 2017 12
PROPERTY MATTERS
Positive vibe in retail sector
Scott Newton
Property Matters with
Knight Frank
In this month’s article, Knight Frank’s retail sales
and leasing specialist Matthew Wright shares his
insights into Hobart’s retail sector of the property
market and his outlook for the future.
THE 2015/16 financial year proved
to be another strong year for the retail
sector in Tasmania.
Since mid 2013, retail turnover
has shown consistent levels of
growth.
The Australian Bureau of Statistics
(December 5, 2016) reported
that retail sales figures were strong
and reflected a 3.9 per cent increase
in the last 12 months, putting retail
sales above $500 million consecutively
for the last six months.
The Tasmanian Chamber of Commerce
and Industry also reported
that confidence is strong throughout
the whole state, notably Launceston
and the greater northern region,
where businesses had reported 20
to 25 per cent increases in October
2016 alone.
As a result of the improved confidence
and spending in the retail sector,
we are seeing an exciting time
The Parliament Square development due for completion in 2018.
for the overall retail property market
throughout Tasmania.
Hobart has seen significant retail
revitalisation over the last five
years with significant developments
including the Cat & Fiddle Arcade,
the Myer Icon development, and the
Wellington Centre all completed.
With an improvement in retail infrastructure,
national brands such
as Franck Provost Paris hair salon,
L’Occitane, Witchery, Lululemon,
Napoleon Perdis, Adairs, House,
Mimco, Colette, Oxford, Bonds,
Gorman, Seed, Trenery, Sportscraft,
Review, Dangerfield, Nine West,
Wittner, Novo Shoes, Typo, T2,
Shaver Shop, Ghanda, Mr Burger,
Liv-Eat, and General Pants Co have
all joined the Hobart CBD.
Hobart has an array of further exciting
retail developments planned
and under construction which will
see further exciting retail offerings
hit the market over the coming
years.
These developments include
the new Parliament Square development
(expected completion
in 2018); the second stage of the
Myer Icon development (completion
late 2018); the MAC1 development
(completion 2017); and 40
Elizabeth Street (2018).
Although there have been increased
numbers of retail offerings
due to new and national retailers
taking these spaces, we have seen
retail rents across greater Hobart
remain relatively constant which
is a positive for our local businesses.
The last 12 months have seen the
largest volume of freehold retail
sales transactions in recent years.
This is on the back of historic
low interest rates, improved confidence
in the overall Tasmanian
economy, and a larger pool of buyers
driven by interstate and international
purchasers.
This had led to recent sales
showing strengthening yields,
particularly for those in the inner
CBD and other strong retailing locations
and having long lease tenure
to strong tenants.
Yields for strip retail premises in
the southern region are typically in
the range of 6 to 8 per cent with the
The last 12
months have
seen the largest
volume of
freehold retail
sales
transactions in
recent years.
lowest yield occurring in the CBD
at 5 per cent.
Strip retail locations to have
transacted over the past 12 months
include the Bidencopes building;
the former Glasser & Parker site on
Liverpool St; Freedom Furniture in
Melville St; the former O’Connors
shoe store in the Elizabeth Street
Mall; and the former ANZ building
on the corner of the Elizabeth Street
Mall.
There is a positive vibe in the
greater Hobart area and as a number
of new developments are completed
over the next 12 to18 months, we
expect to see the next wave of exciting
retailers come to Hobart.
PROPERTY VIEW
FEBRUARY 2017
Business for sale by offer
SHIPWRIGHTS ARMS HOTEL
29 Trumpeter Street, Battery Point
• ‘Shippies’ - a Hobart institution
• Historic, heritage listed hotel successfully
trading since 1846
• Includes public bar, lounge bar, dining room,
2 function rooms, rear courtyard, 9 rooms,
manager’s flat, and offsite parking
• Annual revenue around $1.87 million
• Great location in popular Battery Point with
limited competition
• Significant accommodation revenue
• Operated under management - huge
opportunity for a working couple
John Blacklow: 0418 128 735
View at KnightFrank.com.au/3405337
For lease
CENTRAL CBD OFFICES
Level 2, 175 Collins Street, Hobart
• Quality office accommodation with a large
floor plate of 1,622sqm (approx) within the
heart of Hobart’s office precinct
• The tenancy comprises the whole of
the second floor; is lift serviced; fully airconditioned;
and has a good quality fit-out
in situ
• Can be leased as one large floor plate or
alternatively, divided into smaller tenancies
• Complemented by secure basement car
parking with 12 bays available
Richard Steedman: 0408 559 046
Hayden Peck: 0412 766 395
View at KnightFrank.com.au/3125730
For sale by formal tender closing 16th February
MOTEL 429
429 Sandy Bay Road, Sandy Bay
• Fantastic Derwent River location opposite
Wrest Point Casino and Lords Beach, and
only 3km (approx) from the Hobart CBD
• Includes 33 suites, 3-bedroom apartment,
manager’s residence, reception and office,
gymnasium and sauna, and onsite parking
• All of the 4-star rooms and apartments have
been substantially refurbished
• Mostly operated under management - no
food or beverages to worry about
• Annul revenue exceeds $1.37 million - up
19% from the previous year
John Blacklow: 0418 128 735
View at KnightFrank.com.au/3424970
For lease
GREAT CBD LOCATION
71 Bathurst Street, Hobart
Situated in the historic ‘Bridges Brothers’
building, this property provides an outstanding
large retail opportunity in the heart of the CBD.
• 1,090sqm (approx) of retail space
• Would suit large format retailer
• Great window frontage to busy Bathurst St
• Loads of parking available, directly opposite
Vodafone head office and public parking
• Disability access; car access ideal for
deliveries and/or parking at the rear
• Future large developments planned for
surrounding areas
Matthew Wright: 0458 290 588
View at KnightFrank.com.au/3219862
KnightFrank.com.au P: 03 6220 6999 5 Victoria Street, Hobart