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PROPERTY
SCOTT
NEWTON
Office a post-Covid business essential
Knight Frank Tasmania
partner and office
sales and leasing
specialist Richard
Steedman looks at the
effect of Covid and
working from home on
the office market.
ACCORDING to the recent release
of the Property Council of Australia
(PCA) Office Market Report 2023,
Hobart has the strongest capital city
office market in the country for the
third year in a row with a CBD
vacancy rate of a mere 2.5%.
This is down from 2.7% last year
and is significantly stronger than the
national CBD average of 12.5%. The
working from home disruption as a
result of Covid-19 initially placed in
question the future of office usage.
However as workforces have
returned to work and organisations
rebuild culture, teamwork, productivity and collaboration, currently
we are witnessing no negative
impact on Hobart’s office market.
What Covid-19 has taught us all
is how to adapt, and while a hybrid
working model appears here to stay
for many businesses, it is clear that
the office will remain an essential
element.
The second half of 2022 saw
strong leasing demand for office
After the work-from home
disruption during the
pandemic, workers are
increasingly returning to the
office.
accommodation in Hobart as new/
interstate businesses, large and small
seek opportunities within Tasmania, and existing business’s look to
expand on the back of strong economic growth.
However, with the tightening
market, there are very limited and
in some cases no suitable options,
particularly for larger requirements.
As a result, the lack of office
availability is restricting economic
growth, as the market cannot provide
an office accommodation solution,
and we are seeing businesses turn
their attention to other interstate markets to expand in.
This is also not just restricted to
the office sector, but is also the case
in the retail and industrial property
sectors.
Despite the increasing demand
for office accommodation, and
extremely low vacancy rate we are
not seeing an increase in supply
of office accommodation, with no
new building’s currently under construction, or likely to be constructed
without a pre-commitment from a
major tenant.
The lack of new office accommodation is a result of an increasing
cost of construction, and comparatively low market rental level,
not providing developers with an
appropriate level of return to justify
development.
Property View
John Blacklow 0418 128 73
Significant strategic logistics site.
Outstanding industrial investment property.
263 Kennedy Drive, Cambridge TAS.
69A-71 Lampton Avenue, Derwent Park TAS.
For Sale by Expressions of Interest closing Thursday 9 March 2023 at 4pm (AEDT).
*Approx
2 separate
Redevelopment Short term
titles 7433 sqm* opportunity
holding income
level site
(STCA)
Close proximity Situated in Hobart’s
to major arterial preferred northern
suburbs light
road networks
industrial precinct
Scott Newton
0409 186 261
Matthew Wallace 0418 136 086
Central Battery
Point village
Outline indicative only.
John Blacklow 0418 128 735
For Sale by Expressions of Interest closing Thursday 9 March 2023 at 4pm (AEDT).
Convert to
separate
Strata Titles
Site area
6,172 sqm*
5.9 years* WALE
by income
Good holding
income until
Sept 2023
Situated only
15 kms from
Hobart CBD
Opportunity for
investors to
acquire a quality
industrial holding
Matthew Wallace 0418 136 086
Scott Newton
0409 186 261
Prime investment hotel with development opportunity (STCA).
The Horseshoe Inn - Well known Hobart suburban hotel.
“Cascade Hotel” 22 Cascade Road, South Hobart TAS.
860 Cambridge Road, Cambridge TAS.
For Sale by Expressions of Interest closing Thursday 16 March 2023 at 4pm (AEDT).
*Approx
For Sale Freehold and Business by offer.
Large site
area:
3,007 sqm*
Highly successful Ideal for further
business over
infill residential
a long period
development
Includes
managers
residence
Land area:
4,841 sqm*
Situated only 14 kms
from Hobart’s CBD
Excellent
order
throughout
Two street
frontages
High annual
revenue
$3.4 million*
Fully
compliant
Quality hotel
recently renovated
& refurbished
Annual rent
$320,320* pa +
GST + outgoings
John Blacklow 0418 128 735
Scott Newton 0409 186 261
Outline indicative only.
*Approx
John Blacklow
0418 128 735
Matthew Wallace 0418 136 086
5 Victoria Street, Hobart 03 6220 6999 l 54 Cameron Street, Launceston 03 6333 7888 l 48-54 Oldaker Street, Devonport 03 6424 3568
24 TASMANIAN BUSINESS REPORTER, March 2023
*Approx
Connecting people & property, perfectly.