Commercial Property Demand is Rising in Hobart in 2025

Hobart’s commercial property market is experiencing steady, organic growth—and in 2025, it’s no longer just investors from Melbourne and Sydney paying attention. As the Tasmanian economy matures and the population continues to grow, Hobart is becoming a compelling market for small to mid-sized commercial tenants, private investors, and regional developers.

While not as fast-paced as larger capitals, Hobart offers stability, accessibility, and value—all critical traits in the current national landscape.

Business confidence is growing across key sectors

Local business sentiment is improving as Hobart’s economy diversifies. Professional services, retail, construction and health services are all contributing to steady demand across office, retail, and light industrial properties.

• Strong small business activity in Hobart’s CBD and fringe precincts

• Service-based businesses upgrading into strata offices and mixed-use suites

• Hospitality operators expanding into lifestyle retail zones

• Trades and technicians seeking accessible workshop and warehouse space

These shifts are supporting consistent leasing activity across a wide range of asset types.

Population growth is driving suburban commercial demand

Tasmania’s population growth has outpaced projections over the past five years, with Hobart continuing to benefit from interstate migration and regional retention.

• New housing developments in Kingston, Sorell, Brighton and Glenorchy

• Suburban retail centres seeing increased demand from essential services

• Medical, childcare and allied health tenants securing long-term leases

• Developers considering suburban land for commercial mixed-use builds

This demographic change is pushing commercial demand beyond the CBD into lifestyle and growth corridors.

Limited supply is creating opportunity

Hobart has a constrained commercial property pipeline, especially in modern, flexible stock. This shortage is contributing to low vacancy and premium pricing for well-positioned assets.

• Little new supply in strata offices or A-grade mixed-use

• High retention rates among existing tenants

• Minimal vacancy in industrial property sub-1,000m²

• Rents increasing across medical, retail and trade sectors

This tight supply market rewards owners who position their assets well and present them with polish.

Investors looking for low-risk regional diversification

In 2025, many private investors are prioritising yield and security over speculative growth. Hobart offers a regional capital city with stable tenant profiles and strong long-term fundamentals.

• Entry pricing well below major eastern seaboard cities

• Yields in the 6–7% range still achievable in key zones

• Demand from SMSFs, local syndicates and east coast buyers

• Fewer competing developments mean stronger resale control

For those looking to diversify portfolios with manageable assets in steady locations, Hobart fits the brief.

Key commercial areas to watch

Several zones are showing consistent leasing activity and are attracting developer and buyer attention.

• Hobart CBD – strata office and refurbished retail tenancies

• Moonah & Glenorchy – trade, services and bulk retail

• Kingston – suburban health and childcare expansion

• Cambridge & Brighton – growing industrial zones with warehousing and D&C activity

Each precinct has a distinct offering but shares the same appeal: access, demand, and local economic confidence.

How we help market commercial property in Hobart

Whether you’re launching a strata office, selling a medical centre, or leasing a trade unit—we provide marketing that connects with Hobart’s audience and reflects the professionalism of your property.

• Aerial and street-level 3D renders to showcase the development in its setting

• Full brand development and positioning for new estates or strata releases

• Interactive brochures and agent-ready assets with tailored messaging

• Statewide or national digital campaigns, depending on your target audience

Our work helps regional assets present with capital-city-level polish.

Let’s talk commercial property marketing in Hobart

If you’re preparing to sell or lease a commercial property in Hobart or greater Tasmania, we’re ready to help you create an impact. From design to digital, we manage every step to help you get results.