Colliers Market Report Denmark 2023

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Office - Colliers Market Report 2023

Hotel I ndustrial & logistics Retail Residential Office

A closer look at Copenhagen demand in terms of reloca tion patterns reveals that businesses increasingly move closer to the Capital, away from the environs, whereas few businesses relocate out of the city. To some busi nesses, mainly in growth-industries like the professi ons and knowledge-intensive sectors, a central loca tion potentially provides a competitive edge in the fight for young talent, often preferring a workplace in proxi mity of city life, cultural offerings and public transport.

Coupled with moderate Copenhagen CBD office supply and limited development opportunities, this has driven up office rent levels for contemporary office space in central locations. In the CBD, the strong demand is reflected in record low vacancy rates as of start-Q4 2022, and vacancies are largely reported in old, functionally obsolete properties that fail to meet today’s tenant requirements.

Historically low office vacancy rates in Copenhagen and Aarhus

14%

12%

10%

8%

6%

4%

2%

0%

13

14

15

16

17

18

19

20

21

22

Copenhagen Greater Copenhagen Aarhus

Note: Vacancy rates, office . Source: Ejendomstorvet.dk, Colliers