Colliers Market Report Denmark 2023

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Office - Colliers Market Report 2023

Hotel I ndustrial & logistics Retail Residential Office

Stronger tenant focus on green buildings ESG or social responsibility are climbing to the top of Danish corporate agendas these years; for domestic activities this in practice often involves increased sustain ability and reduced climate impact. Tenants increasingly tend to make it a key issue that office premises live up to certain green standards – and if they fail to do so, they are discarded. When constructed, new office buildings typically aim for energy-efficiency ratings or possibly sustainability certifi cations (often DGNB) tomeet tenant demands. A substan tial part of the old Danish office building stock, however, fails the sustainability test due to low energy efficiency. As a minimum, many buildings therefore require energy renovation if they are to meet the demands of an increas ing number of tenants. Also, if you are an investor, it could in some cases be sound advice to strip and com pletely renovate your vacant old buildings rather than just opt for re-letting. This provides you with an ideal opportunity to adjust to the current and future demands of an ever-increasing number of tenants, thereby posi tioning your property in a market characterised by new demand trends. Sustainability – an inescapable investment truth Sustainability has also entered investor agendas, e.g. in terms of increased interest in acquiring environmentally certified newbuilds. Danish sustainable building criteria are typically high by international standards, and Danish newbuilds therefore often meet today’s requirements, even buildings without certification. As the market for certified buildings is somewhat in its infancy in investment terms, there are no data to show how buildings with a green label are priced compared to non-certified properties. However, there is no doubt that more and more investors have a preference for certified buildings because they are increasingly subject to strict investment criteria, prescribing that only certified build ings are eligible for consideration. Owners are there fore in danger of facing costly refurbishment schemes unless they factor in certification in the construction of new buildings, because the demand will drop for build ings that are not considered sustainable or fail to have a concrete plan to become so.

Alfa Work, Knud Højgaards Vej 2, Søborg

42% of Danish office buildings have energy efficiency ratings below C

G 3 % F 4 % E 9 % D 26 % C 32 % B 12 % A 14 %

Note: Danish office stock by energy efficiency rating (A being the top rating). Source : National Housing and Building Registry, Danish Energy Agency, Colliers