Colliers Denmark Market Report 2024

75

INDUSTRIAL & LOGISTICS - COLLIERS MARKET REPORT 2024

HOTEL INDUSTRIAL & LOGISTICS RETAIL RESIDENTIAL OFFICE

By international standards, the increase in Danish yield requirements has been moderate Compared to the other segments, the industrial and logistics segment in Denmark has historically been a rel atively immature market dominated by private investors and owner-occupied properties. In recent years, the seg ment has undergone rapid development, which, com bined with a strong user market and good prospects, has attracted abundant capital, especially from foreign inves tors. As the segment has become more mature and pro fessionalised and has attracted increased investor inter est, the premium that Denmark has been able to offer compared to neighbouring countries has diminished. Although the yield decompression seen over the past 12 months has been more moderate in Denmark than in several other countries due to the premium, over all Danish yield requirements have also been increasing due to the elevated interest rate level. However, there

are dynamics that have slowed the pace of yield decom pression. As the segment has become more profession alised, superior products are put on the market that bet ter match the investment requirements of core investors. The isolated effect of this is reflected in higher rent lev els and lower yields. Especially last mile locations close to Copenhagen, where there is extremely limited poten tial for additional supply, the prospect of rental growth has led to investors being willing to buy at a lower yield. The same is true for modern logistics properties in the south corridor, where additional development opportu nities are drying up. This is expected to eventually drive up rent levels for prime properties. This bright outlook for rental growth may give investors an incentive to choose to locate their investments in the industrial and logistics segment in Denmark rather than in other countries.

Herlev Hovedgade 15A, Herlev