Colliers Copenhagen Property Market Report 2019

Retail – Market Report 2019

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CASE STUDY: Shopping centres

We have included a case study of two Greater Copenhagen shop- ping centres to illustrate the diverging performance in the shop- ping centre market, Lyngby Storcenter and Rødovre Centrum. Both are regional shopping centres that benefit from a strong location and catchment area, but they have performed very differently in recent years. Both shopping centres serve as good examples of how long- term business plans, executed by proactive, hands-on manage- ments, may contribute to operational stability and resilience. In many shopping centres, landlords have been inclined to take in those tenants that were able and willing to pay the highest rents. Rødovre Centrum has deliberately chosen to retain or attract tenants that may afford to pay only 75% (or less) of today’s market rent but add strong synergies to the remaining retail selection. We believe that it is crucial for the future winners in the retail and shopping centre market to secure the right tenant mix, with an emphasis on tenants that synergise rather than cannabi- lise demand.