Tasmanian Business Reporter June 2019

12 Tasmanian Business Reporter - JUNE 2019
PROPERTY MATTERS
Statewide lease market strong
Scott Newton
Property Matters with
Knight Frank
Rob Dixon, Knight Frank Tasmania’s Director
of Commercial Sales & Leasing (North),
shares his insights into the Northern Tasmanian
commercial market in this month’s
article.
THE Property Council of
Australia Office Market Report
for 2019 released in January
reported Hobart CBD
office market vacancy rate
held steady at 5.9% for the
preceeding 12 months.
Being the third lowest capital
city behind Melbourne
and Sydney CBD markets is
a very positive result.
Northern regional Tasmania,
and Launceston specifically,
is experiencing similar
results with similar vacancy
rates for A-Grade space.
With the opening of the
CH Smith Building, there is a
pending addition of 4500 sqm
of former State Government
offices in May 2019.
Knight Frank has these
large floor plates on offer to
the leasing market.
Recent leasing of more
thanh 2000 sqm of this space,
and strong interest in a further
1000 sqm has highlighted
the strength in this sector
in regional Tasmania also.
Market research by Knight
Frank has Launceston office
vacancy for A-Grade space
at about 7.5%, which is very
encouraging for regional Tasmania.
We have recently seen
several large office developments
taken to the market and
the yields are trending consistently
considering the properties
attributes of location, office
type and lease covenant.
The former Tasmanian
Demand for A Grade office space in Launceston is encouraging.
Trustee building in Patterson
Street has been beautifully
renovated and showcases
Tasmanian office architecture.
The property has recently
transacted more than $3m, reflecting
a yield of about 7.0%.
The CH Smith Building has
recently been sold to an interstate
investor with a healthy
yield of around 6.5%, reflective
of the key investment
attributes: modern building,
well located, good parking,
and an attractive lease covenant
to the State Government.
There are other office assets
currently on offer in the
market that are priced at more
than $6m.
These properties, with a
healthy weighted average
lease term in place, are subject
to lease covenants to government
departments.
With very strong demand
for this sector of the market,
indications are the market is
seeing these assets at a yield
around 7.5% to 8.0%.
A further sale of a significant
B-Grade office block
in the city centre, with good
on-site car parking, was offered
with predominantly
vacant possession. This sale
has highlighted that buyers
see assets offered on a vacant
possession about 100 to 150
basis point yield softer than
leased assets.
A development application
has been lodged for a potential
new office development
in the city that would take up
some of the current market
demand.
Any potential requirements
from the University of Tasmania
in their relocation into
the city centre may place further
demand on a sector of
the market which is currently
holding firm.
Office owners are starting
to look to transition lesser
grade space to meet the needs
and requirements that should
present in the immediate future.
A number of these buildings
are now providing attractive
office fit outs, meeting
the demands of the market.
North West Tasmania, especially
Devonport, witnessed
strong office leasing
conditions during 2018, with
about 3000 sqm of office
space leased across 20 transactions.
In a market dominated by
space in the range of 100 to
200 sqm, Knight Frank concluded
several larger transactions
recently.
PROPERTY VIEW
June 2019
Opportunities abound.
145 Davey Street, Hobart.
For Sale by Expressions of Interest
Rare mall investment opportunity.
55 Elizabeth Street, Hobart.
For Sale by Offer
Flexible: Owner
occupy / develop
Site area:
430 sqm*
Building area:
220 sqm*
100% leased
investment
Site area:
195 sqm*
WALE: 2.6 years
This offering is an 1840 built single-level building on an
“Urban Mixed use” zoned site on a major Hobart arterial
road. The building would be well suited as offices, consulting
rooms, retail, visitor or residential accommodation.
Conditional DA for 2 apartments in place.
Matthew Wright 0458 290 588
Ian Reed 0419 670 501
Hobart’s strategic mega site.
103 Melville Street, Hobart.
For Sale by Expressions of Interest
*Approx
Three level commercial building situated in the heart of
Hobart’s retail pulse, the Elizabeth Mall. The property has
dual retail frontage as fronts Wellington Court at the rear.
The property is fully leased to four tenants and is anchored
by national retailer Ghanda Clothing.
Matthew Wright 0458 290 588
Richard Steedman 0408 559 046
Landmark office building.
144 Macquarie Street, Hobart
For Sale by Offer
*Approx
Site area: 1,179
hectares:*
Existing structure
6,374 sqm*
Scott Newton 0409 186 261
Hayden Peck 0412 766 395
2 year leaseback
SOLD
Knight Frank has the privilege to present the largest and
most significant CBD development site available to the
market. Situated on the Northern edge of the CBD only 250
metres from Hobart’s central retail block, this site represents
an opportunity on scale that is truly unique.
*Approx
Net income of
$1.43 million pa
Lettable area:
5,684 sqm*
Scott Newton 0409 186 261
Richard Steedman 0408 559 046
NABERS rating
of 4 star
SOLD
Strategically located, sustainable A grade office building with
fantastic views and natural light. Substantial capital upgrades
have been completed to the base building lighting, lifts and
mechanical plant. The sale price point represents an attractive
value proposition in a competitive sales market.
5 Victoria Street, Hobart 54 Cameron Street, Launceston 48-54 Oldaker Street, Devonport
P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568
*Approx