No.89 Cambridge Park Dr, Cambridge. Picture: Supplied
A modern office/warehouse facility in Hobart, fully leased to the Tasmanian State Government, has hit the market.
The high-quality asset’s sale is expected to fetch a price in the high-$20m range.
The property at No.89 Cambridge Park Dr, Cambridge is 10 minutes east of Hobart’s CBD within an established government and commercial precinct close to Hobart International Airport and the rapidly expanding Eastern Growth Corridor.
The building is 100 per cent leased to the State Government across two major departments, delivering a weighted average lease expiry of 10 years.
The Department of Health — Ambulance Tasmania and Care@Home — occupies 68 per cent and the Department of Justice — WorkSafe and CBOS — occupies 32 per cent, providing investors with secure, non‑discretionary income underpinned by essential public services.
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No.89 Cambridge Park Dr, Cambridge.
Constructed in 2008, the modern single‑level property comprises 6897sq m lettable area, including 5910sq m of light‑filled office space and an adjoining 987sq m warehouse, supported by 163 on‑grade car parks and landscaped surrounds.
The property is a 2.81ha corner site with high exposure.
Knight Frank agents Tom Ryan and Trent Preece in conjunction with Scott Newton and Richard Steedman of Elders Commercial, are taking the property to market via an expressions of interest campaign.
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No.89 Cambridge Park Dr, Cambridge.
Mr Ryan said the property presents a highly defensive investment opportunity in one of Australia’s tightest office markets.
“This is a compelling government‑backed investment offering long‑term income security in a market where vacancies are among the lowest in the country,” he said.
“With Tasmania continuing to experience constrained office supply and strong demand for quality accommodation outside the CBD, assets like this are exceptionally tightly held.
“The property has been purpose‑fitted by the occupiers, with significant tenant capital investment and further benefits from low historical and forecast capital expenditure requirements, which will be another drawcard for investors.”
No.89 Cambridge Park Dr, Cambridge.
Mr Newton said the scale of the site and strength of the covenant set the property apart, along with the location in southern Tasmania’s growth corridor.
“Investors are responding strongly to assets with long WALE profiles and genuine tenant covenants, particularly where future competition is limited,” he said.
“The Cambridge precinct has established itself as the state’s primary government and commercial precinct outside the CBD, underpinned by strong connectivity, proximity to the Hobart International Airport and a concentration of nearby major industrial and retail occupiers.”
The EOI campaign will close on May 27.