Aalborg Locations MR2020

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Location descriptions | Aalborg – Market Report 2020

Retail

The retail market in Aalborg is split in two sub-markets: the large retail district City Syd with Aalborg Storcenter just south of Aalborg on one side, and the city centre on the other. Even though the retail market is increasingly challenged by online shopping, both the city centre and City Syd have seen decent results. City Syd is the largest in terms of revenue, and according to a 2018 study by ICP (Institute for Center Planning), the district accounts for more than one third of the total retail revenue generated in the North Denmark Region. The district is home to Aalborg Storcenter, boasting the second largest BILKA hypermarket in Denmark, the smaller shopping centre Shoppen, IKEA, Bauhaus, Biltema, Plantorama and more. The location just south of Aalborg makes it accessible by car, and the entire district has approx 4,500 free parking spaces. In its study, ICP recom- mended allowing an expansion of City Syd by deregulating some of the local development plans. The City of Aalborg is currently working on following that recommendation. In Aalborg Storcenter, the rent level is between DKK 3,500 – 4,500 per sq m p.a., excluding operating costs and taxes, depending on location, and outside the rent level is DKK 750 – 1,200 per sq m p.a. for big box stores, also depending on location. The city centre has a thriving retail scene distributed on two primary pedestrian streets, where typical big international and Danish retail chains have their flagship stores. In 2018, the shopping centre Friis opened after an extensive makeover, welcoming back Magasin to Aalborg. This might mean a new beginning for the shopping centre after battling with a challenging rental situation for some years. However, fringe locations on the outskirts of the high-street area have suffered under the increasingly beleaguered retail market, and the secondary pedestrian streets are struggling. The opening of Magasin and Lagkagehuset in Nørregade and development of Budolfi Plads may revitalise both Nørregade and Gravensgade with reduced vacancy to follow. Prime retail rent is approx DKK 4,600 per sq m p.a., while secondary retail rent is approx DKK 2,000 per sq m p.a.

RETAIL

Change

Market Expectations

Typical rent levels

2017 4,600 2,000

2018 4,600 2,000

2019 4,600 2,000

2020 4,600 2,000

2019-20 2020

0% 0%

Prime

Aalborg

Secondary

Note: Rent levels quoted in DKK per sq m p.a. exclusive of operating costs and taxes. Market expectations indicate trend forecast for the next 12 months. Source: Colliers