 Asset Class: | Industrial |
 Price: | $ 2610000 |
 Net Yield: | 6.20 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Pre Market |
Prominently positioned on Westbury Road in South Launceston, this fully leased warehousing property offers a strong investment opportunity. The site spans approximately 3,477 sqm, with a gross building footprint of 1,736 sqm (GLA 1,907 sqm), providing a well-sized asset in a key commercial location. Whilst the lease expiry occurs late in 2025, there is a scarcity of available warehouses of this size for tenant to relocate to. There is also a potential uplift in the rents, which should increase the net return to approximately 7.4%+, or a capital increase of approximately $500,000+.<br><br>Constructed with low-maintenance materials, the property benefits from over 50 metres of frontage on a major arterial road. The expansive warehouse design supports efficient operations, while the strategic location, just 3 km from Launceston’s CBD, ensures long-term accessibility and desirability. The original building substantially redeveloped and extended in the 2000’s. <br><br>The price for the asset of $2,610,000 (yet to be confirmed by the vendor), delivers a net return of approx $161,858, or 6.20%. <br><br>The asset is secured by a lease to ZircoData until October 2026. The strength of the tenant and the essential nature of their business enhance the property’s long-term investment appeal. The tenant has substantial racking systems in the asset, which would be costly to disassemble and relocate. Further, there are very few nearby options for relocation that exist. This means that capitalising on a rental increase in October, along with securing a longer lease term, provides a significant upside opportunity.<br><br>Positioned on a high-exposure road within a well-established commercial precinct, the property benefits from strong connectivity and proximity to Launceston’s CBD. Its strategic location supports tenant operations and ensures continued investment viability. Industrial assets of this size and prominence are difficult to find so close to the CBD. <br>
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Launceston, Tasmania’s second-largest city, presents compelling investment opportunities driven by strong economic growth, population expansion, and increasing infrastructure development. Here’s why it stands out as an attractive investment destination:<br><br>1. Economic Growth & Business Confidence<br><br>Launceston is a key commercial hub in Tasmania, benefiting from a diverse economy that includes agriculture, tourism, education, and healthcare.<br>Government and private sector investments continue to strengthen the local economy, creating long-term business stability.<br>The city has seen a rise in entrepreneurial activity, particularly in retail, hospitality, and technology sectors.<br><br>2. Population Growth & Demand for Housing<br><br>A growing population, fueled by lifestyle appeal and migration, is increasing demand for residential and commercial property.<br>Launceston’s affordability compared to major capital cities is attracting young professionals, retirees, and remote workers.<br>The University of Tasmania’s expanded presence in the city further supports population and rental demand.<br><br>3. Strong Rental Yields & Affordable Entry Prices<br><br>Residential and commercial properties in Launceston offer competitive rental yields compared to mainland Australia.<br>Property prices remain relatively affordable, allowing investors to enter the market at a lower capital outlay while benefiting from consistent demand.<br><br>4. Infrastructure & Development Projects<br><br>Major infrastructure upgrades, including the Launceston City Deal, are enhancing connectivity, livability, and economic prospects.<br>Continued investment in transport, education, and health services improves long-term growth potential and property value appreciation.<br><br>5. Tourism & Lifestyle Appeal<br><br>As a gateway to Tasmania’s renowned natural attractions, Launceston is a thriving tourism hotspot, boosting demand for short-term accommodation and hospitality investments.<br><br>A vibrant cultural scene, world-class food and wine offerings, and a strong sense of community add to its appeal as a desirable place to live and invest.<br><br>Launceston offers a unique combination of affordability, strong rental returns, and economic resilience. With ongoing infrastructure development and increasing demand for property, it presents a compelling opportunity for investors seeking stable growth and income potential.
Additional Location Information FileZircodata Pty Ltd <br><br>ZircoDATA is a market leader in Records and Information Management (RIM), providing secure document storage and records lifecycle solutions from information governance and digital conversion through to storage, language services and destruction since 1995.<br><br>• Approx 1,763 sqm lettable area <br>• Have occupied site since 2016 <br>• Existing Lease expires October 2026 <br>• Rent: $176,358pa + Outgoings + GST <br>• Outgoings: All outgoings are recoverable except for building insurance and management fees <br>
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• Outstanding industrial offering, with dual frontage, within close distance to the Launceston CBD. <br>• Substantial landholding of approx. 3,477m2, with a gross building footprint of 1,736 sqm (GLA 1,907 sqm).<br>• Significant short-term upside via increasing the rents to market, with a market range indicated of between $110/m2 to $125/m2. The asset is currently rented for $92/m2. <br>• Substantial upside potential by renegotiating a longer term lease, and adjusting the rents to market rates. Conservative upside indications of $500,000 plus. <br>• The tenant has occupied with the site since 2016, with substantial investment in the building, a desire to be near to the CBD, and extremely limited options for relocation. <br>• Constructed with low-maintenance materials, providing little in ongoing maintenance.<br>• Net return of $161,858 (after non-recoverable building insurance estimated at $6,500, and management fees estimated at $8,000), equating to a net return of 6.2%.<br>• 6 car spaces on the title.<br>• With a population around 100,000 people, Launceston is one of the larger regional cities in Australia.<br>
