Colliers Aarhus Delrapport 2023 UK

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total container traffic. The Port of Aarhus is home to more than 150 businesses across a 280-ha expanse, with approx- imately 97% of the area being rent-bearing or designated for infrastructure. With the Molslinjen ferry link having re located here, more than 1.3 million cars currently pass through the area each year. If current plans are carried out, the port is expanded by a 100-ha outer port, Yderhavn, to consolidate the Port’s position as Denmark’s preferred com mercial port. The expansion will help to create jobs in the area. West of Aarhus, along the Herning-bound motorway, lie Harlev and Framlev. In this area, the City of Aarhus has ear- marked new areas for industrial/logistics newbuilding, main- ly heavy industry, which has generally been difficult to place in consideration of off-city-centre residential districts and groundwater vulnerability. Still on the drawing board, the plans for the area have yet to be determined in local plan ning. Industrial/logistics newbuilding lagging behind The boom witnessed in the Danish industrial/logistics mar ket during the coronavirus pandemic carried over into 2022, in Aarhus too, translating into e.g. historically low vacancy levels and rising rent levels. Demand continues to greatly

outstrip supply, and recent years’ virtually non-existent sup ply is not set to grow in the short term as the industrial/ logistics pipeline counts very few Aarhus developments. In addition, supply is hampered by the fact that multiple old industrial districts have been or are being converted for residential use, in the process effectively reducing even the more secondary building stock. Broadly speaking, demand centres on up-to-date and con temporary facilities in prime locations with swift and easy access to the motorway grid or with city proximity, providing ideal conditions for last mile distribution. Nevertheless, de- mand is so strong that even the old building stock enjoys record-low vacancy rates, with an increasing number of ten- ants feeling forced to remain in existing, obsolete premises, just as new tenants feel forced to settle for premises that fail to fully meet their requirements. Moreover, the shortage of premises makes it more difficult for Aarhus industrial businesses to expand as they are stuck in their existing premises.

Aarhus Local market report for Colliers Market Report 2023

Industrial/logistics in demand, but in scarce supply

Irrespective of rising interest rates and widespread econo- mic uncertainty, the strong investor demand for industrial

Record-low number of industrial/logistics vacancies

0% 1% 2% 3% 4% 5% 6% 7% 8%

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Note : Vacancy rate, industrial and logistics, Aarhus. Source : Colliers, Ejendomstorvet.dk.