Aalborg Locations MR2020

Location descriptions | Aalborg – Market Report 2020

9

Industrial & logistics

As stated above, Aalborg used to be a traditional industrial city. The change the city has undergone, and still is undergoing, is particularly visible in the industrial and logistics property market. Aalborg used to have a considerable amount of heavy and light industry throughout the city. Now most of the heavy industry has moved outside the city bounda- ries or has closed down altogether. Other major Danish cities have seen a similar shift with heavy industry being replaced by firms with logistics operations. This is not the case in Aalborg, where logistics firms prefer a location outside Aarhus or in The Triangle Region, and only place minor hubs in the Aalborg area. Østhavnen, the commercial harbour where the Port of Aalborg operates from, still sees substantial container traffic, and several logistics companies have placed minor logistics facilities here. Despite the lack of a major logistics hub, and the steady decline of industrial firms, demand remains strong across the region for small, flexible industrial and logistics areas. The entire North Denmark Region has the lowest industrial and logistics vacancy rates among all regions in Denmark with just 1.3% vacancy in this category. Prime industrial and logistics properties in Aalborg are situated in a wide belt from the south of Aalborg towards the east by Østhavnen. Some companies prefer a location north of the sound of Limfjorden, in order to serve North Jutland without having to pass through the motorway bottleneck Limfjordstunnelen. Although this broad diversity in the property location counteracts a massive rise in rent levels, the prime industrial and logis- tics rent level has now risen to approx DKK 375-400 per sq m p.a.

INDUSTRIAL/LOGISTICS*

Change

Market Expectations

Typical rent levels

2017

2018

2019

2020

2019-20 2020

350 250

375 275

400 275

400 275

0% 0%

Prime

Aalborg

Secondary

1 Industrial includes production, storage and logistics facilities. 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