Focus Report Copenhagen - Colliers Denmark 2025

RETAIL - COLLIERS FOCUS REPORT COPENHAGEN 2025

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not benefit from the synergy of clusters of stores with a wide selection. It is therefore the established retail areas of Copenhagen that continue to attract tenants, while new areas only become interesting when stable anchor tenants are in place. High streets still a tenant's market In recent years, Copenhagen's prime high-street loca tions have become a tenant's market, where tenants can shape their leases. To retain and accommodate tenants, landlords are increasingly offering flexible and incen tivised leases that include rent-free periods and fitting up subsidies. Tenants are evaluating leases based on turnover burden and are less willing to pay a premium for visibility and exposure unless it supports sustainable store operations. To ensure a healthy balance in the market, adjustments to rent levels may be necessary in certain areas. Temporary discounts and short non-terminability periods are not sufficient solutions if the basic costs are still too high compared to the potential of the leases. In addition to luxury brands that require flagship stores in high-street locations, we are increasingly seeing stores with a wide range of goods relocating to the most attractive locations. These brands reach a wider audience, making them less susceptible to economic fluctuations. At

the same time, their turnover can better support high rent levels, giving them access to prime locations.

Few large leases top multiple small leases Danes are making more purchases online. When consumers go to brick-and-mortar stores instead of shopping online, they expect to find the same products in store as they can online. However, small stores typi cally do not have the necessary space, which is one of the reasons why we have seen a shift in demand for retail space. Rather than several small leases, more retailers want to have one large store that can meet consumer demands. This means that larger leases have become more attractive than before. In recent years, Copenhagen has also seen an increasing influx of DIY and convenience stores, which also demand larger premises. Customers demand accessibility in the form of both short distances and easy access to goods, which has led several retail chains to move into central Copenhagen. Examples of this trend are Silvan and jem & fix, which have opened city centre stores in Copenhagen K, Nørrebro and Frederiksberg.

Sluggish investment market, but sound investment opportunities

Because of recent years’ uncertainty, investors in the retail segment have been extremely cautious, and several

Typical rent levels

RETAIL

2022

2023

2024

2025

Area up to 100 sq m

12,000-22,000

12,000-22,000

11,000-23,000

10,000-24,000

Copenhagen high street (upper end)

Area 100-300 sq m

11,500-19,000

11,500-19,000

11,000-20,000

11,500-21,000

Area 300+ sq m

10,000-15,000

10,000-15,000

9,900-15,500

10,000-16,000

Area up to 100 sq m

6,000-10,500

6,000-10,500

5,700-10,500

6,000-10,500

Copenhage high street (lower end)

Area 100-300 sq m

6,500-10,000

6,400-9,900

6,400-10,000

6,600-10,200

Area 300+ sq m

4,300-8,500

4,300-8,500

4,100-9,000

4,100-9,000

Area 100-300 sq m

3,800-9,500

3,700-9,400

3,500-9,200

3,500-9,000

Copenhagen Latin Quarter/ Grønnegade/Ny Østergade

Area 300+ sq m

3,000-7,500

3,000-7,500

2,800-7,500

2,700-7,500

Area 100-300 sq m

1,400-4,000

1,300-3,900

1,300-3,700

1,100-3,500

Other central retail districts

Area 300+ sq m

1,300-3,000

1,200-2,900

1,100-2,800

1,050-2,700

Note: Rent levels quoted in DKK per sq m p.a., exclusive of operating costs and taxes, retail, Copenhagen. Level in 2025 indicates Colliers' estimation at year-start. Source: Colliers