Colliers Denmark Market Report 2025

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RETAIL - COLLIERS MARKET REPORT 2025

Gørtlervej, Odense SV

Investment market: The long haul Recent years’ rise in interest rates and the higher risk premium on retail property have served to drive up yield requirements quite significantly in the segment. Many core and core+ investors have exited the retail segment, and liquidity in the market has been very limited. In 2024, we have seen mainly interest from value-add investors, who have been leading the way in a slow market. Core investors focused primarily on grocery stores and made their mark with a few, but relatively large transactions. However, activity was generally low, and the segment hit a total transaction volume of DKK 4.7 billion in 2024. Nevertheless, we are more optimistic about retail prop erty in 2025 compared to recent years. When the price and terms are right, there are buyers in the market, and we have seen multiple high-street retail transactions. At the same time, retail property yields have reached lev els where retail property may well become an interest ing asset class from a risk-adjusted perspective, pro vided that investors have fundamental confidence in the rental market. At the same time, we have also seen inter national examples of investors taking advantage of the very limited competition and relatively attractive pricing to snap up properties. This could potentially become a trend also in the Danish market.

Frederiksberggade, Copenhagen high street

Domestic and international investors accounting for even share of transaction volume

Few but high-volume core investments fronted the market in 2024

53% Core

26% Value-add

Risk profile

1% Opportunistic

49 %

51 %

20% User

DOMESTIC

INTERNATIONAL

Note: Transaction volume in Denmark, retail, by investor origins and risk profile, 2024. Source: Erhvervsmæglernes Branchedata, Colliers