Focus Report Copenhagen - Colliers Denmark 2025

INDUSTRIAL AND LOGISTICS - COLLIERS FOCUS REPORT COPENHAGEN 2025

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Healthy occupational market and prospects of continued rental growth

INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

The market for industrial and logistics properties in Copenhagen and environs continued to be characterised by high activity and demand in 2024, supported mainly by the very robust and strong occupational market. At the same time, politicians continue to focus on creating more housing, with industrial areas largely being zoned for residential purposes as a result. The combination of rising demand and stagnant or declining supply is creat ing upward pressure on rental prices, which we expect to continue.

Rents continue to rise, especially in certain locations

are located in the so-called south corridor, with limited development opportunities closer to Copenhagen. This means that some tenants must compromise on property standards to secure a central location.

The turmoil and geopolitical uncertainty of recent years has led many companies to prioritise securing their supply chains. When goods and supply chains are close to warehouses and end-users, the risk of companies suddenly being unable to deliver their goods is reduced. The demand for industrial and logistics properties in and around Copenhagen is therefore also high, which is helping to push up rent levels. Rent levels continue to rise, especially in strategically located areas where demand outstrips supply. This applies to e.g. Kirstinehøj in Kastrup, which is a small area experiencing high demand due to its proximity to the airport, the motorway grid and central Copenhagen. In addition, demand remains high in certain parts of Greater Copenhagen. With the prospect of a low supply of new properties, rent levels here are expected come under upward pressure. This applies to areas such as Avedøre Holme, Rødovre and Vallensbæk Strand. One challenge in the market is the fact that a substantial proportion of the building stock does not meet users' requirements. In Greater Copenhagen, the industrial and logistics segment is largely characterised by old and func tionally obsolete buildings, the vast majority predating 2000. Most up-to-date, sustainable logistics properties

Modern Greater Copenhagen production facilities in high demand

It is uncertain to what extent Danish manufacturing companies will choose to establish themselves in Greater Copenhagen if they move their production back to Denmark or the EU. This is due to the area's limited supply of modern production facilities and the limited number of development sites. In addition, rent levels and labour costs are currently high. Already estab lished manufacturing companies in and around Copen hagen experience similar limitations. Many of them are therefore expected to be facing an increasing need for new premises, either because they are tenants in prop erties zoned for urban development or because their current premises are outdated. Developers are less prone to build production facilities instead of the more standardised industrial and logistics buildings that dominate the market. This undeniably ties in with the fact that such facilities typically must meet tenant-specific needs, which can render them difficult to re-let. However, this does not lessen the need, and it is undoubtedly necessary for municipalities to designate