Colliers Market Report Denmark 2023

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Retail - Colliers Market Report 2023

Difficult conditions yet to register in bankruptcy statistics

630 2021

810 2019

Hotel I ndustrial & logistics Retail Residential Office

695 2022

447 2020

692 2018

10 %

17 %

-45 %

41 %

Note: Number of registered bankruptcies, retail. Percentage denotes y/y change. Source : Statistics Denmark, Colliers

Shopping centres in fight mode to retain sales For years, shops were seen to discard a traditional street location for shopping centres, mainly outside Copenhagen and Aarhus. Now the trend is starting to turn, with shops discarding shopping centres for a street location. Running a business from a shopping centre has become a costly affair which may potentially incentivise some tenants to (re)locate to a shopping-street location. This calls for action on the part of shopping-centre owners if they are to retain anchor tenants when renego tiating terms. It is important for the landlord to ensure a strong customer flow by offering the right layout and the right tenants as well as effective marketing to draw cust omers into the shopping centre. As the pandemic unfol ded, many landlords were reported to be accommoda

ting, helping tenants through periods of sluggish sales by granting temporary rent discounts or temporary reve nue-based rent, etc. Similar measures may be in order in today’s market, with shopping-centre owners with a long term investment horizon required to bemore accommoda ting to tenants’ call for a financial timeout, for instance. The pressure will be most pronounced on tenants in shopping centres unable to secure sufficient footfall. Small local shopping centres with a limited selection of shops will bear the brunt of consumer restraint, with well-run and well-visited shopping centres with large catchment areas better bolstered for crisis-like conditi ons. In times of uncertainty in particular, the spread bet ween yields on shopping centres in prime versus secon dary locations widens.

Bryggen, Vejle