Focus Report Copenhagen - Colliers Denmark 2025

INDUSTRIAL AND LOGISTICS - COLLIERS FOCUS REPORT COPENHAGEN 2025

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new areas for industrial use while offering small plots that companies can purchase and develop themselves for their specific manufacturing needs. Despite the high demand for production facilities, the market for industrial and logistics properties in Copen hagen and Greater Copenhagen experienced a slight increase in vacancy from year-end 2023 until Q3 2024. Multiple companies postponed their relocation plans due to the general economic uncertainty. However, this trend reversed in Q4 2024 and continued in Q1 2025, with tenants showing decisiveness and increasingly looking for new premises in Copenhagen and environs. Properties that can be used for light industrial and last mile distribution are among the most coveted by tenants and investors alike. Demand for well-located Greater Copenhagen properties outstrips supply, driving up rental prices. Traditional business areas are transforming for residential purposes to accommodate the capi tal's growing population. Locations such as Albertslund, Brøndby, Glostrup and Herlev have seen a significant drop in industrial and logistics properties. Closer to Weaker supply of Greater Copenhagen industrial properties

Copenhagen, more specifically in the eastern part of Amager, Balder has acquired plots of land totalling 27,225 sq m, which previously constituted an old industrial area. The new local plan, which will enable the construction of apartment buildings, row houses and a general care centre as well as the expansion of the existing school, was submitted for consultation in January 2025 and is still awaiting a conclusion at the time of drafting this report in April. In 2026, ALFA Development is expected to initiate a similar conversion of former commercial space into housing at Rovsinggade in Copenhagen. By 2045, Hersted Industrial Park near Glostrup will have transformed into a residential area that will also house businesses and jobs. With this development, we expect that the next 18 months will see multiple industrial and logistics tenants vacate their leases in the areas where housing is planned. This means that there is no prospect of an increase in the supply of properties for light industry or last mile distribution in Greater Copenhagen. On the contrary, there is the prospect of a decrease, which will push rental prices up in the long term unless demand slows down significantly.

Vacancy has decreased since Q3 2024 due to renewed optimism

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Copenhagen

Copenhagen environs

Greater Copenhagen

Note: Vacancy, industrial and logistics. Source: Ejendomstorvet.dk, Colliers