Focus report Aarhus - Colliers Denmark 2024

RETAIL - COLLIERS FOCUS REPORT AARHUS 2024

22

New players and concepts Despite rising vacancy rates, demand for retail space remains strong. We see a tendency for more space-inten sive retailers to move from big box areas to more cen trally located leases. In 2023, Silvan moved to H&M’s for mer premises at Lille Torv as part of the DIY group’s push for compact city stores in the largest cities. Restaurant chain Pincho Nation also opened their new restaurant on Skt. Knuds Torv as part of their growth stra tegy, where they now have six restaurants and plans to go nationwide. PWT Group leased a total of three leases on Søndergade/Ryesgade, two of which have been merged into one store. Tøjeksperten, owned by PWT Group, now occupies one of the largest leases on Strøget. Sportswear company Planet Nusa, which previously only had a store in Copenhagen, has opened at Guldsmedgade. In April 2024, restaurant Bouillon opens, serving French bistro food at affordable prices. Bouillon moves into the restau rant space in Europahuset, which has been empty since Dalle Valle’s bankruptcy. In Lighthouse, a restaurateur couple has opened two restaurants - Restaurant BAVN, located on the 44th floor at a height of 142 metres, and Brasserie BAVN on the first floor of the property. Several grocery stores in central Aarhus have also received a boost. For example, Netto on the corner of Thorvaldsensgade and Vestergade has completed devel opment with a newly built store that has been upgraded

At the centre of Strøget lies the Salling department store, a significant customer magnet and massive driver of Strøget’s popularity. At Aarhus Central Station at the southern end of Strøget, lies Bruuns Galleri, one of Denmark’s most visited shopping centres. Bruuns Galleri seems to have been spared from the rising vacancy rate experienced on Strøget. In early 2024, it was announced that global clothing chain Mango will open a store of more than 600 sq m on the first floor of the shopping centre. The Latin Quarter, known for its charming architecture and vibrant city life, is located at the northern end of Strøget and is the most sought-after location for cafés and restaurants. The rise in vacancy rates is not evident in the Latin Quarter, as it continues to see demand from small retailers and eateries. Continued tenant’s market As during the COVID-19 pandemic, renegotiations, relo cations and flexible landlords continue to characterise the Aarhus retail market. Landlords are not achieving the same rent levels as before and are generally willing to discuss shorter non-terminability periods on leases, fit out subsidies and stair-stepped rents when signing new leases. Leases that are not refurbished, etc. are vacant or rented out to temporary pop-up concepts. However, large-scale stores are still being established with a focus on sales areas.

Typical rent levels

RETAIL

2021

2022

2023

2024

CHANGE 2023-24

Aarhus high street (upper)

6,000

6,000

6,000

5,800

-3%

Prime

3,250

3,000

3,000

3,000

0%

Secondary

Aarhus Latin Quarter

3,250

3,000

3,000

3,250

8%

Prime

2,000

2,100

2,000

2,000

0%

Secondary

Local shopping centres

1,000

1,100

1,000

1,000

0%

Prime

900

900

900

900

0%

Secondary

Note: Rent levels quoted in DKK per sq m p.a., exclusive of operating costs and taxes, retail, Aarhus. Level in 2024 indicates Colliers’ estimation at year-start. Source: Colliers