Colliers Denmark Market Report 2024

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INDUSTRIAL & LOGISTICS - COLLIERS MARKET REPORT 2024

Tenants stepping up green demands

Traditionally, many tenants have had the following requirements or desires when choosing a lease in the industrial and logistics segment:

Newly constructed, up-to-date logistics buildings are often far too large for smaller companies, even when they are multi-user buildings. This is one of the reasons why small last mile properties close to Copenhagen, often built as user properties back in the 1960s or 1970s, are attractive to many companies. These properties fit their limited area requirements and are well located in a market with limited choice. When tenants start demanding climate-friendly proper ties, it creates an incentive for landlords and investors to take action in their property management and invest ment decisions. This domino effect was observed in the market in 2023. For landlords, it becomes easier to justify a higher (gross) rent when tenants can achieve savings through, for example, lower energy consumption. From an investor’s perspective, it strengthens the sustainable profile of the property and secures its long-term value and saleability.

1. Good location close to motorways and/or near major towns and cities.

As more companies adopt corporate social responsibility and ESG policies, the topic of climate-friendly properties has become a hot topic for tenants, landlords and inves tors alike. A sustainability certificate, often following the widely used DGNB standard, used to be a side benefit of a newer property, but now it is increasingly becoming a requirement from more tenants. Only few tenants are therefore willing to compromise on the certification, quality of the property and conditions such as ceiling height, number of doors, low energy con sumption, etc. but may opt for this strategy to secure a location close to Copenhagen and to get the right size space for their needs. 2. Space-efficient premises, e.g. with ample ramps and gates, with a ceiling height of 8-12 metres and with large outdoor areas.