Colliers Aarhus Delrapport 2023 UK

Moderate investor demand Investor demand remains relatively moderate for Aarhus retail properties, and buyers have generally become more cautious and selective. Nevertheless, demand is still fair for non-cyclical retail properties with financially strong tenants.

The same applies to properties in top locations, which are expected to see sustained strong occupational demand and customer flows. Over the next 12 months, investors with a retail focus are expected to remain active in the market, although they will be more discerning.

Typical rent levels

Retail

Change

2020 6,500 3,500 3,500 2,000 1,000

2021 6,000 3,250 3,250 2,000 1,000

2022 6,000 3,000 3,000 2,200 1,100

2023 6,000 3,000 3,000 2,000 1,000

2022-23

Aarhus high street (upper end)

Prime

0% 0% 0%

Secondary

Aarhus Latin Quarter

Prime

Secondary

-9% -9%

Local shopping centres

Prime

Secondary

900

900

900

900

0%

Note : Rent levels quoted in DKK per sq m p.a., exclusive of operating costs and taxes, retail, Aarhus. Level in 2023 indicates Colliers’ estimation at year-start. Source : Colliers.

Change in market conditions affects yield levels

3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00%

18 High street - Prime

19

20

21

22

23

High street - Secondary

Local shopping centres - Prime

Local shopping centres - Secondary

Note: Net initial yields, retail, Aarhus. Level in 2023 indicates Colliers’ estimation at year-start. Source: Colliers.