Hobart Industrial Market Trending Strong As Demand Increases
Amidst rising interest rates and increased construction costs nationwide, Hobart’s industrial market has continued to soar as demand increases, with the industrial commercial sector of the market defining the most sought-after asset class within the last 18 months.
In line with the national trend, the industrial sector is seeing what can be defined as ‘unprecedented demand’ as workers continue to return to the formal working environment, trading in their home office spaces for a return to the workplace, resulting in a rapid uptick in the market.
Comparatively, Hobart remains as one of the more competitive regions in the country, with vacancy rates for industrial spaces sitting as low as 5%, creating a high demand market for businesses and investors in the state’s capital. A strong Tasmanian economy coupled with limited land in the greater Hobart region has been cited for the exceptional growth in the market.
“The industrial market (in Hobart) has undisputedly been the most sought-after asset class in the last 18 months,” commented Devine Property’s commercial representative, George Wilkinson.
“As all asset classes have been impacted due to the rising interest rates and increased construction costs, the industrial market has remained resilient with a significant demand for industrial properties of both small and large floorplans. On the ground we are seeing industrial properties that are within close proximity to the Hobart CBD being highly sought after, and the lack of supply means these types of properties are in a position to drive a premium.”
The team at Devine Property continue to excel across all property markets, with successful commercial deals closed out in the Cambridge industrial region which can be viewed via the link below:
https://www.devineproperty.com.au/recently-leased
Furthermore, increased supply in the Cambridge area has been provided by The Young Group with the development named ‘The Yard’, which will provide a much-needed boost in industrial property, adding a further 1500m2 of lettable area to the market.
An exciting development, it’s expected that the land will be snapped up quickly, with businesses and investors alike encouraged to get in quickly before the supply runs out.
“The Yard is an exciting new development that provides a hybrid model between the traditional industrial warehouse, and new common area amenities including forklift accessibility, a car wash bay, and A Grade office space all included as part of the body corporate,” commented Wilkinson.
Consumers can expect the industrial market to continue its upward trajectory as the world returns to formal business, as Australia’s industrial market has been called the ‘tightest in the world’ according to new research from CBRE. This therefore suggests that vacancy rates will continue to tumble, with the competitive landscape increasing.
“As agents, the most common leasing rates for industrial properties are between $140 and $200 per square meter,” finished Wilkinson.
Further available listings can be viewed via the following link: https://www.devineproperty.com.au/commercial
KEY TAKEAWAYS:
- Australian industrial market considered ‘tightest in the world’ according to study conducted by CBRE.
- Hobart’s current industrial vacancy rate at 5%.
- Investors seeing value in industrial real estate and define it as ‘stable investment.’
- Businesses snapping up space as workers return to the office.