Landmark Capital City CBD Opportunity: Hobart City Block Hits the Market

A landmark opportunity to own a city block in the heart of the CBD within Tasmania’s capital city has emerged. The site includes the former K&D Warehouse alongside a leased office building on Harrington Street, which is anticipated to sell for over $30 million and is set to be one of Tasmania’s largest transactions in 2025.

The expansive 11,799sqm (approx.) site at 103 Melville Street and 159–163 Harrington Street is just 350 metres from Hobart’s main retail precinct and is one of the most significant commercial offerings to hit the Tasmanian market in years.

The property is being jointly marketed by Matthew Wright and George Wilkinson of Burgess Rawson from CBRE and Claude Alcorso and Matthew Wallace of RWC Tasmania. Matthew Wright of Burgess Rawson from CBRE said the property will attract attention from both domestic and offshore investors.

“There’s growing interest from international buyers, driven by Tasmania’s attractive yield profile, constrained supply, and a strong public sector presence, in addition with the pending outcome of the state election, renewed momentum around the AFL stadium and Macquarie Point could further drive economic growth”, Mr Wright said.

With Commercial zoning, the site offers a rare blank canvas for developers, providing flexibility to either repurpose the existing structure or undertake a large-scale redevelopment. The zoning permits a wide range of uses including large-format retail, office towers, shopping centres, supermarkets, hotels, or mixed-use commercial and residential projects.

“Opportunities of this scale and strategic location rarely present themselves, not just in Tasmania, but nationally,” said Claude Alcorso of RWC Tasmania. “The ability to acquire a city block in the heart of a capital city offers a transformative canvas for developers to reimagine the future of Hobart. It’s an incredibly exciting project for both our teams to be involved with.”

George Wilkinson of Burgess Rawson from CBRE emphasised the national significance of the offering. “This is more than just a development site, it’s a chance to redefine a key part of Hobart’s CBD for the next generation,” he said. “With the right vision, this block could become a catalyst for urban renewal, economic activity, and community engagement.

Nationally, it’s rare to find such a blank canvas with both the physical scale and planning framework to deliver meaningful, city-shaping outcomes.” The site is currently held under short-term leases, providing holding income while allowing developers immediate access post-settlement.

Matthew Wallace said “The holding income gives investors the flexibility to plan while generating a return from day one, and you have control over when you require vacant possession.”

“It’s not just the size; it’s the location, zoning, and flexibility that make this site truly exceptional. An entire city block coming to market like this is almost unheard of.” “Hobart continues to perform strongly in the commercial property market.

Office vacancy in the CBD is the lowest in the country at just 3.6 per cent, compared to a national average of 13.7 per cent, so the demand is clearly there. This site could accommodate a wide range of developments that directly respond to that demand.” With a price guide exceeding $30 million, the site presents a rare and strategic opportunity for developers, investors, and institutions to secure a premium position in one of Australia’s most tightly held capital city markets.

The property is being sold via an Expression of Interest campaign.