Colliers Market Report Denmark 2023

Office - Colliers Market Report 2023

22

22

Office summary

Transaction volume DKKbn

12 9

The Danish office market has remained strong, reporting brisk activity and low vacancy despite record-high inflation, rising interest rates, the war in Ukraine and economic uncertainty. Demand has been driven by exceptionally strong employment, but mainly the lessons learnt during the pandemic have made tenants call for increased flexibility, e.g. in terms of lease agree ments with shorter or no commitment as well as easily up- or down-scalable premises to fit requirements and workload. In addition, it remains to be seen if the 40-year inflationary high will take full effect, driving up rent levels substantially. Yield decompression in Copenhagen and Aarhus 0% 1% 2% 3% 4% 5% 6% 7% 8% 23 22 21 20 19 18 17 16 15 14 Copenhagen CBD, secondary Copenhagen CBD, prime Aarhus, secondary Aarhus, prime

Denmark

Gt. Copenhagen

Share of total transaction volume

15 % Denmark 18 % Gt. Copenhagen

Share of foreign investors

30 % Denmark

35 % Gt. Copenhagen

Note: Based on transaction volume for office in 2022, Denmark. Source : Colliers

Note: Net initial yields, office. Source: Colliers