Colliers Market Report Denmark 2023

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Office - Colliers Market Report 2023

Hotel I ndustrial & logistics Retail Residential Office

investment opportunity. In consequence, the due diligence process should involve a closer scrutiny of the tenants if the risks are to be assessed that up until today have been less important issues when trading core properties. Strong office market defies uncertainties 2022 was marked by investment market uncertainty, which certainly fed through to office property sales too. Nonetheless, investment demand remained intact, with largely external factors such as higher interest rates and market uncertainty contributing to relatively slug gish activity. Although the consensus is that Denmark is probably headed for recession, the office market in particular is well-bolstered to with stand any potential knock-on effects. Buoyed by record-high employ ment levels and exceptionally low vacancy rates, the strong occupa tional market will have to suffer a substantial blow for yield levels to be severely affected. This is supported also by an anticipated slow down in newbuilding in the years ahead. 2023 will see sustained uncertainty, but also an office market in which further yield decom pression is unlikely. More than anything, the arrow points to a mar ket that will end the year the same way it started.

Danish investors were buyers in most office transactions in 2022

Value-add properties were investors’ top picks in 2022

45% Core

51% Value-add

Risk profile

2% Opportunistic

30 % International

70 % Domestic

3% User

Note: Transaction volume in Denmark, office, by investor origins and risk profile, 2022. Source : Colliers

Emma Stubberup Manager | Valuation & Advisory emma.stubberup@colliers.com