Focus Report Copenhagen - Colliers Denmark 2025

RETAIL - COLLIERS FOCUS REPORT COPENHAGEN 2025

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INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

former core or core+ investors have turned to other segments. With few buyers, the remaining value-add and core+ investors are not seeing much competition in the retail property market. This has driven up yield require ments and often widened the gap between buy-side and sell-side price expectations, making it difficult for the parties to reach an agreement. However, over the next 12 months, we believe that more capital will be allocated to the retail segment. It is a long, hard slog to lure investors back, but with attractive risk-ad justed yields in prime Copenhagen locations, retail may well become interesting for investors again. In addition, the yield spread between the high risk-adjusted yield requirements and the lower interest rates on financing may per se favour a stronger focus on the retail segment. The less cyclical grocery stores remain the most liquid segment of the retail market. Although the segment is dominated by a small number of transactions involving domestic and international buyers, the acquisitions are typically of a significant volume. 2024 was another meagre year in the transaction market for classic retail properties. 2025 is unlikely to be much different, but there are positive signs. With relatively attractive pricing, 2024 saw an increase in transaction

activity in the Copenhagen high-street market, largely due to Kristensen Properties joining forces with Alma Property Partners to acquire two high-street properties at Frederiks berggade. In both cases, Abrdn was the seller.

Copenhagen retail vacancy on the rise

5%

4%

3%

2%

1%

0%

13

14

15

16

17

18

19

20

21

22

23

24

25

Copenhagen

Copenhagen environs

Greater Copenhagen

Note: Vacancy, retail, Copenhagen. Source: Ejendomstorvet.dk, Colliers