Government-Backed Industrial Asset Hits the Market in Hobart Growth Corridor

An expansive government-leased industrial holding in Hobart’s tightly held Mornington precinct is set to go under the hammer, offering a diversified income stream and long-term development potential. 

Located at 132 Mornington Road, the property spans more than 12,000 square metres and includes three freestanding warehouses, all fully leased to government tenants. 

The property has been listed for sale by Burgess Rawson from CBRE’s Matthew Wright and George Wilkinson in conjunction with Elders Commercial Hobart’s Scott Newton and Richard Steedman. 

The three industrial buildings total 2,654 square metres and are occupied by two Tasmanian Government departments, both of which have maintained a presence on the site for over two decades. 

The Department of Primary Industries, Parks, Water and Environment leases the largest facility, while the other two buildings are occupied by the Department of Police, Fire and Emergency Management. Combined, the leases generate an annual income of approximately $297,680, with expiry dates ranging from 2027 to 2030 and multiple options extending to 2037. 

The site includes 17* on-site car parks and a vehicle wash bay and sits within the Light Industrial Zone, offering flexible future use. A key feature of the asset is the approximately 5,000* square metres of undeveloped land at the rear of the site, which presents significant development or expansion potential, subject to council approval. 

Mr Wilkinson said the offering represents one of the most compelling industrial investment opportunities to come to market in Tasmania this year. 

“The long-standing government tenancies, large landholding and strong rental return make this a standout asset in any portfolio,” he said. “With multiple options in place and over 25 years of government occupation, it’s a proven performer.” 

Mr Wright added that the underlying land value and flexibility would appeal to a broad spectrum of investors. 

“This is not only a secure leased investment but also a site with genuine long-term growth potential in a high-demand industrial location,” he said. “It’s rare to find both in one opportunity.” 

Mr Newton said the industrial location continued to attract strong demand from high-calibre tenants. 

“Mornington’s industrial precinct is very tightly held, being only a mere 7 kilometres from Hobart’s CBD, with easy access to greater Hobart’s arterial road network,” he said. “The precinct is the location of choice for a multitude of major national tenants including Bunnings, Mitre 10, Australia Post, Petstock, Bluescope Steel and Repco.” 

Mr Steedman added that the combination of secure income and untapped land value presented rare upside. 

“The potential upside for this property is twofold, with the development potential of the surplus land of approx. 5,000 sqm as well as future rental growth,” he said. “Greater Hobart’s industrial market has experienced solid rental growth in recent years, which looks set to continue for some time.” 

The property is being offered for sale via Burgess Rawson from CBRE’s Portfolio Auction event on Wednesday 6 August at 10.30am at Crown Casino Melbourne. 

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*Approximate