Colliers København Delrapport 2023 UK

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with a drop in demand. Technological advances, e.g. semi-autonomous truck platooning, drone deliveries, im- proved automation and fully automated storage and re- trieval systems, could reshape the market in near future, to some extent counteracting the effects of the bleak eco nomic outlook. One feature common to the new concepts is that they are less labour-intensive. In Greater Copenhagen, the historically low supply has forced startups or expanding businesses to move further afield in search of commercial development sites with motorway proximity. More than anything, this has put the so-called south corridor, see below, on the map, offering a wider range of opportunities because of several specula tive newbuilding schemes. Because Greater Copenhagen supply is limited, tenants are not in a strong position to make demands. However, the situation is different when they have to settle for lease premises outside Greater Copenhagen. Here, tenants prefer high-ceilinged storage/logistics facilities with an adequate number of ramps to allow for as efficient and rapid delivery and pick-up as possible. Moreover, ample space around the buildings is generally a must.

market conditions has only had a moderate effect on this segment relative to other segments, e.g. the retail market. In addition, yield requirements in prime logistics locations in Denmark continue to exceed the yield levels in most other countries of northern Europe, ensuring a certain leeway for less dramatic, albeit necessary correction. These two fac tors combined have contributed to less pronounced yield decompression than anticipated in Denmark. In a historical context, the Danish investment market for industrial/logistics properties has been relatively immature: only in recent years, have foreign investors developed an appetite for the Danish market. In terms of transaction vol ume, foreign investors accounted for the largest share of transactions involving Greater Copenhagen industrial/logis tics facilities in 2022. Unlike the past, when focus was on high-volume properties, investors are now also interested in bundling smaller properties. As the segment benefits from favourable market conditions and as inflation is expected to drop, just like interest rate hikes are expected to slow, yield requirements across loca tions and property types are believed to be stable in 2023. The same applies to rent levels, which are now believed to have climbed to a breaking point.

Copenhagen Local market report to Colliers Market Report 2023

On account of the generally favourable market trends in the industrial/logistics market specifically, the change in

Scarce supply drives down vacancy to record low

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CBD

Greater Copenhagen

Capital area

Note : Vacancy rates, industrial and logistics, Copenhagen. Source : Colliers, Ejendomstorvet.dk.