Focus report Copenhagen - Colliers Denmark 2024

2024

Focus Report Copenhagen

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

Contents

Intro

3

Office

6

Residential

24

Retail

36

Industrial and logistics

48

Transactions

56

About Colliers

59

Meet our experts in Copenhagen

60

We have compiled various fur ther information on Denmark’s foremost growth centres to sup plement Colliers Market Report Denmark 2024, which offers a detailed review of key investment and occupational market trends in the Danish property industry.

This Focus Report describes the commercial property market in Copenhagen .

If you would like to learn more about the markets for office, retail, industrial and logistics as well as residential property in Aarhus, Odense, Aalborg or the Triangle Region, please visit Colliers’ homepage to view all local market reports: colliers.com/en-dk/research All reports provide you with local market insights, including historical rent developments along with key transaction data. In addition, we give a brief introduction to key development areas in the residential segment.

Colliers Denmark | colliers.com | +45 70 23 00 20

Colliers Market Report 2024 as well as all local market reports, Focus Reports, are based on market data that Colliers believes to be reliable. Whilst every effort has been made to ensure that the information provided in the reports is both accurate and complete, Colliers accepts no liability for factual errors. Published by Colliers. Reproduction or citation of Colliers Market Report 2024 as well as Focus Report Copenhagen 2024 only with full acknowledgement of source. Please note that photos may be copyrighted.

1

COLLIERS FOCUS REPORT COPENHAGEN 2024

Contact

Any questions about data and contents?

Mie Frimann Petersen Associate, Valuation & Advisory +45 51 44 31 77 mie.petersen@colliers.com

Simon Krogh Nøhr Manager, Valuation & Advisory +45 23 27 61 16 simon.kroghnohr@colliers.com

Do you require local market assistance (investment/leasing)?

Peter Winther Executive Director and Head of Capital Markets | Partner | MRICS +45 28 19 66 76 peter.winther@colliers.com

Colliers Copenhagen Toldbodgade 33 DK-1253 Copenhagen K +45 70 23 00 20

2

COLLIERS FOCUS REPORT COPENHAGEN 2024

3

COLLIERS FOCUS REPORT COPENHAGEN 2024

INTRO

Copenhagen remains Denmark’s main attraction

Copenhagen is the capital of Denmark and also the largest urban area with some 1.4 mil lion inhabitants across 18 municipalities. At the centre lies the City of Copenhagen, with more than 650,000 inhabitants the most highly populated municipality, having almost twice as many inhabitants as Denmark’s second-largest municipality, Aarhus.

In recent years, Copenhagen has attracted substantial worldwide acclaim, for instance on the architectural scene, as UNESCO has named the city World Capital of Architecture in 2023-2025. The same applies to the global gastronomical scene as the city can muster all of 15 Michelin-starred restaurants, including Geranium and Noma, named the world’s best and second-best restaurant, respectively, both boasting 3 Michelin stars. In 2023, for the second year in a row, Copenhagen was recognised by Economist Intelligence as the second-best city in the world to live in. The judging emphasised stability, culture and environment, infrastructure, health and education. Moreover, Copenhagen is northern Europe’s economic growth centre, reflected e.g. in the number of global organisations with head offices in Copenhagen, and reflected also in solid demand in the property investment market, also from foreign investors. Shift in demographic trends Over the past decade, Copenhagen 1 has seen strong population growth of approx. 11%, equalling an annual nominal increase of some 13,700 inhabitants. Popu lation growth has been the strongest in Copenhagen proper 2 , driven mainly by 25-29 year-olds. Copenhagen

environs have seen a similar strong growth rate, but with both 25-29 year-olds and 30-34 year-olds being the main growth drivers here. Broadly speaking, we have seen population growth virtually across the board, reflecting the pull of the city. Copenhagen is expected to see a continued substantial rise in inhabitants. Statistics Denmark predicts popu lation growth of approx. 3.7% between 2023 and 2033,

Note: 1 Copenhagen in this context denotes Copenhagen proper (Københavns By) and Copenhagen environs. 2 Defined as Copenhagen, Frederiksberg, Dragør and Tårnby.

4

COLLIERS FOCUS REPORT COPENHAGEN 2024

equalling a nominal increase of some 50,700 inhabitants. As Denmark’s leading science centre and home to the highest ranking university, Copenhagen has an overrep resentation of students and employable 30-49 year-olds. Like most of Denmark, however, the average age of inhabitants is climbing at a steady pace in Copenhagen. Seniors (60+ years) are expected to account for the largest percentage share of the projected population growth. Copenhagen, along with Aarhus, has the highest education levels in Denmark, with all of 20% of inhab itants here having completed medium- og long-cycle further education, greatly outperforming the national average. This is reflected in Copenhagen income brackets, as Copenhagen has a pronounced overrep resentation of high-income residents relative to Denmark in general. Similarly, average income levels are signif

icantly higher in Copenhagen relative to Denmark in general, in particular in Copenhagen environs, where the number of employed graduates is higher, unlike Copen hagen proper with its high concentration of students. For a number of years now, the infrastructure of Copen hagen proper has improved considerably, in part to accommodate the city’s growing population, but also to retain its position as a green frontrunner with some of the most ambitious climate goals in the world. The extension of the metro system, which is a hub for public transport in Copenhagen and has been named the best in the world on multiple occasions, is scheduled for completion in 2024. Further lines to connect the city in all directions are now being discussed. Reaching as far ahead as 2035, the plans involve the proposed expansion by an additional nine stations.

5

COLLIERS FOCUS REPORT COPENHAGEN 2024

Demographics, 2021-2023

Migration patterns 1

Inflow

Outflow

1,395,507 43% -36% 92% Inhabitants, 2023

Birth-rate surplus

20%

28%

22%

20%

20-24 year-olds

20-24 year-olds

Net migration (domestic)

Net immigration (from abroad)

25-29 year-olds

25-29 year-olds

Population growth, 2013-2023 1

What age groups have driven population growth?

What age groups mainly account for negative growth?

25-29 year-olds

30-34 year-olds

65-69 year-olds

0-4 year-olds

27% | 25,400

25% | 23,662

-6% | -5,842

-1% | -1,011

Population forecast, 2023-2033 1

What age groups will drive future population growth?

What age groups will mainly account for negative growth?

65-69 year-olds

0-4 year-olds

45-49 year-olds

10-14 year-olds

32% | 16,094

28% | 14,066

-19% | -9,691

-12% | -6,275

900,199

3.60% 27% 287,885

Number of employed

Unemployment rate

hold a bachelor's de gree as a minimum

Average disposable annual income (DKK)

Note: Data for Copenhagen proper and Copenhagen environs. 1 Based on aggregate population growth in the period. Source: Statistics Denmark, Colliers

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

6

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

7

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

Robust office letting market

Despite a year of widespread market uncertainty, including a shift in working patterns in the aftermath of the COVID-19 pandemic along with geopolitical unrest, the Copenhagen office market continues to be characterised by massive demand.

As Denmark's primary centre for economic growth and office-intensive industries, Copenhagen is also a particu larly attractive city to live and work in. This is supported by a steadily rising employment rate, which set a record several times in 2023. Employment is largely supporting occupational demand in the office market in Copen hagen and the surrounding municipalities, which has contributed to a historically low office vacancy rate. Solid infrastructure supporting office market During the COVID-19 pandemic, working from home really took off, and the office market in several cities abroad has undergone a structural change. More employees have been less interested in resuming their commute to the same extent as before, prompting companies to reduce

their space requirements. In several big cities in both Europe and the US, this has led to significant increases in office vacancy rates and a decline in office rent levels. Copenhagen is not experiencing the same challenges, which is reflected in continued low vacancy rates and rising rent levels. In Denmark, the need for working from home is signif icantly lower compared to several other countries, and Danes show less interest in working from home. This is evident in a report on working from home by CESifo in 2023, where saving travelling time is cited as the biggest benefit of working from home. Copenhagen in particular benefits from a strong infrastructure, with several S-train stations providing easy access to neighbouring towns and

Historically low office vacancy rates

10% 11% 12% 13% 14% 15%

4% 5% 6% 7% 8% 9%

13

14

15

16

17

18

19

20

21

22

23

24

Copenhagen

Copenhagen environs

Greater Copenhagen

Note: Office vacancy rates, Copenhagen. Source: Ejendomstorvet.dk, Colliers

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

8

cities, while the expansion of the metro network has made public transport in Copenhagen more flexible. This is seen as a particular advantage for the Copenhagen user market. Copenhagen suburbs and neighbouring municipalities greatly benefit from access to the S-train stations. In 2023, the areas around Copenhagen have not only seen an increase in take-up levels but reletting periods here have also become shorter compared to Copenhagen proper. The upcoming Greater Copenhagen Light Rail, scheduled for commissioning in 2025, is expected to have a further positive effect on office properties located close to the railway line. Low vacancy and more selective tenants Relative to comparable metropolises in Europe, office rents in Copenhagen are significantly lower, although it should be noted that the way the lettable area is calcu lated may differ from country to country. The lower office rent levels in Copenhagen tie in with the fact that the city has historically had key development areas available, including Nordhavn (the north harbour) and the Carlsberg City District. These areas have undergone – and are still undergoing – a major transformation, as well as Postbyen, which is still under development. However, supply dynamics are changing, and the pipeline of devel opment opportunities is gradually drying up in central

locations. This is expected to lead to sustained rent increases in the most attractive locations in both the short and long term. Overall, vacancy rates in and around Copenhagen have been downtrending in the aftermath of the COVID-19 pandemic and are now at a historically low level. The vacancies that still exist, however, mainly include outdated properties that do not meet the require ments of more selective tenants. This is due to mounting demand for contemporary and more flexible office space or space in very central and attractive locations. We are also seeing a trend of more companies investing in improving their sustainability profile, partly to contribute to climate goals, but also to strengthen their position in relation to competitors and employees. This has fuelled the demand for leases with sustainability certificates, and some tenants are seen to actively discard leases that are not certified. This can increase the difference in market rent for certified and non-certified leases. Scepticism among international investors Broadly speaking, the Copenhagen investment market for office property differs from the rest of the country, as the market here is driven by domestic pension funds and international investors, who have long had a strong appetite for Copenhagen.

Narrower spread between prime and secondary office yields

7%

6%

5%

4%

3%

2%

1%

0%

19

20

21

22

23

24

CBD, secondary

CBD, prime

Non-CBD, prime

Non-CBD, secondary

Note: Net initial yields, office, Copenhagen. Level in 2024 indicates Colliers’ estimation at year-start. Source: Colliers

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

9

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

In 2023, the office investment property market was characterised by a general reluctance among interna tional investors. This is due to the international frame of reference, where rising vacancy levels and falling rents have kept international investors on the sidelines. In addition, it has not made things easier that some Swedish and German investors, who have previously been particu larly active in the core office property market in Copen hagen, are also challenged by current market conditions. The caution among international investors has opened the door for domestic investors, who have had the opportunity to complete some attractive deals. Espe cially domestic pension funds, previously struggling to be

competitive on the pricing of the most attractive office properties, have entered into major deals. AP Pension's acquisition of Codanhus and Kalvebod Brygge 32 clearly shows that the market has shifted and that transactions can easily take place when there is a realistic seller and a buyer who dares to act when the opportunity arises. In 2024, we expect that domestic investors, especially Danish pension funds, will continue to benefit from the wait-and-see attitude among international investors in the market. However, we also expect investment market transactions to pick up as more international investors recognise the potential of the Copenhagen occupational market.

Njalsgade 19-23, Copenhagen S

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

10

Copenhagen CBD

Typical rent levels

OFFICE

2021

2022

2023

2024 CHANGE 2023-24

Prime

na

na

na

na

na

Government District 1

Secondary

na

na

na

na

na

Prime

1,650

1,700

1,750

1,750

0.00%

Pedestrian District

Secondary

1,150

1,200

1,250

1,300

4.00%

Prime

1,850

1,900

1,950

2,000

2.56%

Banking District

Secondary

1,400

1,450

1,500

1,550

3.33%

Prime

1,800

1,850

1,900

1,950

2.63%

Frederiksstaden

Secondary

1,450

1,500

1,550

1,600

3.23%

Prime

1,700

1,750

1,750

1,750

0.00%

Rosenborg District

Secondary

1,300

1,350

1,350

1,350

0.00%

Prime

2,100

2,150

2,200

2,250

2.27%

City Hall/Central Station District

Secondary

1,200

1,250

1,350

1,400

3.70%

Prime

1,900

1,900

1,900

1,900

0.00%

Kalvebod Brygge/ Havneholmen

Secondary

1,450

1,450

1,450

1,450

0.00%

Prime

1,700

1,750

1,800

1,850

2.78%

Christianshavn

Secondary

1,300

1,350

1,400

1,450

3.57%

Prime

1,650

1,700

1,750

1,800

2.86%

Islands Brygge

Secondary

1,050

1,100

1,150

1,200

4.35%

Prime

1,950

2,000

2,050

2,150

4.88%

Nordhavn

Secondary

1,400

1,450

1,500

1,600

6.67%

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

1 na = not available as the district has a high prevalence of public-sector tenants, with a letting market in the ordinary sense virtually non-existent. Net market rent projections are based on the assumption that the potential future increase in operating costs will be the same in all locations, thereby not impacting net market rental prices. However, it cannot be ruled out that significant increases in operating costs may cause businesses to discard specific locations and opt for other, less expensive locations. This may cause a shift in overall demand and, by extension, the net market rent in the areas in question.

Source: Colliers

11

COLLIERS FOCUS REPORT COPENHAGEN 2024

Metro station Train station

Note: Rent levels quoted in DKK per sq m p.a., exclusive of operating costs and taxes, office, Copenhagen. Source: Colliers

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

Nordhavn Prime Secondary

2,150 1,600

Pedestrian District Prime

Rosenborg District Prime

1,750 1,300

1,750 1,350

Frederiksstaden Prime

Secondary

Secondary

1,950 1,600

Secondary

City Hall/Central Station District Prime

Christianshavn Prime

1,850 1,450

2,250 1,400

Secondary

Secondary

Banking District Prime

2,000 1,550

Secondary

Government District

Kalvebod Brygge/ Havneholmen Prime

1,900 1,450

Secondary

Islands Brygge Prime

1,800 1,200

Secondary

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

12

Copenhagen CBD The following is a brief introduction to the central Copenhagen office market, Copen hagen CBD (Central Business District). The Government District near the parliament buildings The Government District houses a prominent stock of historical landmark buildings, almost exclusively used by public authorities and agencies as well as several minis tries and government agencies. An actual letting market in the ordinary sense is therefore virtually non-existent, and the vacancy risk is limited due to the potential number of public-sector tenants in the downstream of central government. The Pedestrian District Comprising the Copenhagen high-street area and the medieval city centre, the Pedestrian District is charac terised by a predominance of smaller office premises, often with inefficient space layout reflecting the design and age of the building stock. Despite its central location in the CBD and easy access to Nørreport station, a hub for public transport, most of the office stock in the district is lacking in functionality, flexibility and cost efficiency. In addition, there is a significant shortage of available parking spaces in the district. As a result, the district is not considered a prime office location compared to other CBD districts, which is reflected in rent levels. The Banking District Located east of the Pedestrian District and just north of the Government District, the Banking District encom passes the areas surrounding Holmens Kanal and Kongens Nytorv. The district was traditionally among the preferred locations for banks and other financial insti tutions, including the Danish central bank, Danmarks Nationalbank. The district benefits from easy access to public transport at Kongens Nytorv offering multiple bus services and a metro station providing access to all metro lines. The area is hampered by scarce parking facilities, but the diversified building stock, easy access by public

transport and diverse urban life give the district char acter, appealing to a wide range of businesses in pursuit of small and medium-sized office units. The district is predicted to transform in the coming years as it is becoming an increasingly popular location for serviced offices, restaurants and shops. For instance, it cannot be ruled out that the Danske Bank head-office buildings will be repurposed for other uses, including hotel, offices, shops and residential units, once the premises are vacated. Frederiksstaden Centred around the Queen’s residence, Amalienborg Palace, Frederiksstaden is considered a prestigious CBD office location with an imposing building stock consisting of mansion and palace-style buildings with a modernised layout. Both historically and today, the district is preferred by law firms, professional and business service consul tancies, financial institutions and shipping companies, including the A.P. Moller-Maersk Group, which is head quartered in Frederiksstaden. In addition, attracting many restaurants and art galleries, the district has a rich cultural life. After much political attention, in November 2023, A.P. Moller-Maersk had plans for an expansion of their head quarters on Amaliegade approved. The project includes a 26,000 sq m office expansion, which will be built in line with the company's recently launched ESG strategy and provide a modern workplace. A new waterfront plaza is also prioritised, which is expected to bring more traffic to the area. Public transport conditions are relatively good with the Marble Church metro station and the proximity to the public transport hubs at Kongens Nytorv and Østerport station. However, the central location means a lot of traffic for motorists during rush hours - something that has not improved with the traffic changes resulting from A.P. Møller-Maersk's ongoing construction works. The availability of parking facilities is fairly good in the area

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

13

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

considering its central location, not least thanks to new underground parking facilities in the district.

Today, the district offers a varied mix of relatively effi cient large-scale office domiciles with underground parking facilities and small to medium-sized offices in older multi-tenant buildings. The district benefits from excellent access by public transport, with Copenhagen Central Station serving as an important hub. Considered a classic city-centre location, the district is home to major law firms, trade unions, industry associations and financial institutions. In addition, governmental and municipal agencies account for quite a large proportion of office users. One of the largest and most prominent construction schemes in the district is the Postbyen (post city) devel opment by a joint venture of pension funds Danica and ATP on the former post office site at Bernstorffsgade, which is expected to provide Copenhagen with 7,500 new workplaces. The first stage, involving the new Danske Bank 73,000 sq m head office, has already been completed. Among other things, the second stage involves the addition of a 34,000 sq m office building, The Stamp, accommodating some 2,000 workplaces. Lease units vary in size from 845 to 5,991 sq m, accommodating 42-399 office workers. When completed, the Postbyen development is expected to expand the CBD as well as enhance the district’s position as a central Copenhagen office location.

The Rosenborg District Surrounding Rosenborg Castle and the King’s Garden, the Rosenborg District offers both large-scale office premises and smaller leases in older town houses with a relatively space-efficient layout and modern exterior. Both Nørreport station and the Kongens Nytorv metro station are in the immediate vicinity of the district, with Nørreport offering regional and S-train as well as metro and bus services. Parking is scarce at street level, but several underground parking facilities are available. Traditionally, the district has been preferred by the media as well as government and quasi-government organisa tions, but the growing presence of shops and restaurants has had a positive effect on the district’s overall appeal. The City Hall and Central Station District Situated near City Hall Square (Rådhuspladsen) and Copenhagen Central Station, this district has trans formed in recent years, spearheaded by the spectacular Axel Towers office complex. Together with Industriens Hus on the corner of Vesterbrogade and H. C. Andersens Boulevard, Axel Towers has consolidated the district’s status as one of the most expensive office locations in Copenhagen.

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

14

Copenhagen Harbour Districts

The Harbour Districts are characterised by prestigious buildings, offering large-scale and up-to-date office facilities. In the past, the Harbour Districts were coveted by large scale office users, including financial institutions, but this is expected to be changing.

Whereas the southern districts enjoy easy access to both the motorway grid and Copenhagen Airport, the northern districts are less fortunate, although motorway access has improved. However, all districts benefit from relatively central locations with fairly good public transport links, including metro, S-train and bus services. The building stock of these districts is of a more recent date compared to other CBD locations, typically offering also on- or underground parking facilities. Kalvebod Brygge/Havneholmen This location is one of the most attractive waterfront locations, today commanding the highest rent levels in the Harbour Districts. The district enjoys easy access to the motorway grid, Copenhagen Airport and the Copen hagen city centre.

new domicile in Nordhavn in 2024. Instead, Jyske Bank will take over the distinctive glass building to consol idate its current activities, which are currently spread across Vesterbrogade, Lyngby and Havneholmen. Jyske Bank expects to move in in 2025. In 2024, Cadeler will move into Genmab's former domicile, also on Kalvebod Brygge. The landlord is Castellum, which company has just moved to Havneholmen. Christianshavn Christianshavn, located on the Amager side of the harbour, is a popular mixed-use residential and office area with a special ambience due to scenic canals and the old fortification line. Redeveloped old warehouses and modern office buildings blend together. Major occupiers include ministries, banks and other financial institutions as well as creative businesses, including architects and advertising agencies. In 2023, Netcompany moved into Nordea's former headquarters on Strandgade, which has

After being headquartered in Glaskuben on Kalvebod Brygge for several years, Nykredit plans to move to a

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

15

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

been refurbished and now houses 1,600 employees who were previously located at other sites in Copenhagen.

to move into Svanemølleholm in 2024, while law firm Accura moved into their new headquarters at Trælast holmen in Nordhavn back in April 2023. Most recently, in September 2023, Nilfisk moved into their new head quarters on Marmorvej. Nordhavn is home to spectacular office buildings, including the highly sought-after Portland Towers, and in 2024, the construction of one of Denmark's largest wooden buildings, Marmormolen, is scheduled for completion. Marmormolen is a sustainable project being built by AP Pension, where the use of wood helps reduce CO2 emissions by 50%. Another domestic pension company, PFA, has - like other players in the office market - rethought the traditional office concept and launched the multi-user building The Union on Lautrupsgade and the newly built, DGNB Plati num-certified office building Tromsø. Thanks to its proximity to Nordhavn S-train station and two metro stations, the district benefits from great acces sibility. In addition, in 2023, the Danish Parliament intro duced a proposal allowing the Metro Company to pursue plans to place two additional stations in the Nordhavn district, which will further approve access to the district, always provided the metro extension project is approved.

Islands Brygge Similarly located on Amager, opposite Kalvebod Brygge and Havneholmen, this former industrial area has over the past 20 years been redeveloped into an attractive city district with housing and offices. The area benefits from easy access to both the city centre, the motorway grid and Copenhagen Airport. The office stock is charac terised by repurposed former industrial buildings. Nordhavn Still under development, the vibrant and prestigious new city district of Nordhavn houses several financial busi nesses and law firms, valuing the up-to-date, space-ef ficient and flexible office premises in the area and its ample parking facilities. The district has seen a lot of interest and activity in recent years and is now generally considered to be part of the Copenhagen CBD due to the attractiveness of the area, with a waterfront location close to the affluent northern suburbs and a relatively short distance to the city centre. Several large companies have chosen to relocate their headquarters to Nordhavn, including Nykredit and AP Pension, both of which are expected

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

16

Copenhagen non-CBD

Nørrebro Situated northwest of the CBD, Nørrebro is first and foremost a mixed-use residential and retail district rather than a characteristic office area as the office premises in the district are of diverse quality with no distinctive office clusters or centres. When it comes to parking, Nørrebro faces some of the same challenges as other Copenhagen city districts, with fairly scarce parking considering the building density of the area. In terms of public transport, accessibility is fair with multiple metro stops and Nørrebro S-train station. While office premises generally fail to meet today’s tenant requirements, Nørrebro appeals to many small and medi um-sized creative businesses, including office users in the media and music industries. Copenhagen Science City (CSC) is spearheading the development of a new science centre in the district with a focus on health and life sciences, cleantech as well as information and communication technologies (ICT). Anchored by the University of Copenhagen, the Metro politan University College and the Copenhagen University Hospital, CSC strives to create a strong knowledge and innovation community. In the more run-down parts of Nørrebro and the north western city district of Copenhagen NV, old indus trial buildings are on a large scale being converted for up-to-date office use, with the buildings typically retaining their original industrial-style exterior. This has given new life for instance to the Rentemestervej area of Copenhagen NV and Titangade/Sigurdsgade at Nørrebro. However, complete urban redevelopment will take time, and the process is projected to be ongoing for years to come. Frederiksberg Encircled by the City of Copenhagen, Frederiksberg consti tutes a municipality of its own and is predominantly a vibrant residential district. It enjoys a location close to the CBD and is well serviced by all metro lines. Frederiksberg contains several pockets of office premises, with the area

The following is a brief introduction to the office market outside the Copenhagen CBD, including the districts encircling the city centre, and Greater Copenhagen. Østerbro Located just west of Langelinie and north of the Copen hagen CBD, the district of Østerbro offers a wide variety of office premises. In this district, the prime office location stretches mainly along Dag Hammerskjölds Allé and Strandboulevarden, featuring several impressive mansion style buildings. The area is favoured by embassies and non-profit organ isations as it benefits from close proximity to the Copen hagen city centre. Containing several large-scale offices built in 1960–1980, the area around Lyngbyvej/Lersø Parkallé is generally considered a less prestigious office location. Office leases in the area often fail to meet today’s tenant requirements in terms of space efficiency and flex ibility.

Codanhus, Frederiksberg. Photo: CBRE

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

17

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

around Flintholm station establishing itself as a prime office location in recent years, housing for instance the EY head office at Flintholm, Flintholm Company House II, developed by NCC. Other areas include the Frederiksberg City Hall square with the Rialto landmark building serving as centrepiece and Gammel Kongevej/Vodroffsvej near the Copenhagen Lakes with Codanhus as the most prom inent office building. Hellerup and Tuborg Havn Hellerup and Tuborg Havn on the waterfront are among the most attractive office areas north of the Copenhagen CBD, featuring a modern office building stock with street level or underground parking facilities. Access by car is fairly good, but the district lacks top-tier public transport as the main train station is not ideally situated vis-à-vis the office clusters of the district. There are no plans to link the district to the Copenhagen Metro. Tuborg Havn has traditionally been preferred by law firms, professional consultancies and financial institutions, but the location is increasingly competing with other office locations such as Nordhavn that offer closer proximity to the Copenhagen city centre. Despite massive competition from Nordhavn, there is still activity in the area around Tuborg Havn, where the Novo Nordisk Foundation bought a 54,000 sq m plot from Danica Ejendomme in 2023. The deal is conditional on a new local plan that allows for office

construction, and the new building will replace Danica Ejendomme's construction of two additional coastal houses in addition to the three already built. Because the Novo Nordisk Foundation has outgrown their current headquarters in the same area, they will build 16,900 sq m facing the water. Lyngby/Gladsaxe Supported by excellent motorway access, the Lyngby and Gladsaxe office locations have seen mounting demand in recent years. Located near the affluent residential districts of northern Zealand and a short distance from Copen hagen, the district offers lease opportunities for domestic and international companies in search for large-scale office premises. Furthermore, knowledge-intensive businesses prefer the location as DTU provides a large pool of highly skilled labour. As a result, businesses in the fields of IT, insurance and biotech, etc. have settled in the vicinity. Current large scale office users include Microsoft, Maersk Drilling, Danica Pension, COWI and Jyske Realkredit. However, the latter is moving to Kalvebod Brygge in mid-2025, when Jyske Bank concentrates all its activities in the building dubbed Glaskuben (the Glass Cube). PFA has launched its office concept The Union at two different addresses in Lyngby, of which one multi-user building is currently fully let, while vacancies remain in the other.

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

18

Copenhagen non-CBD

Typical rent levels

OFFICE

2021

2022

2023

2024 CHANGE 2023-24

Prime

1,650

1,700

1,750

1,800

2.86%

Østerbro

Secondary

1,150

1,200

1,250

1,300

4.00%

Prime

1,450

1,500

1,550

1,550

0.00%

Nørrebro

Secondary

850

900

950

950

0.00%

Prime

1,550

1,550

1,550

1,550

0.00%

Frederiksberg

Secondary

950

950

950

950

0.00%

Prime

1,500

1,575

1,675

1,775

5.97%

Hellerup

Secondary

1,150

1,200

1,300

1,400

7.69%

Prime

1,800

1,850

1,900

1,950

2.63%

Tuborg Havn

Secondary

1,300

1,350

1,400

1,450

3.57%

Prime

1,550

1,600

1,650

1,700

3.03%

Lyngby

Secondary

950

1,000

1,100

1,150

4.55%

Prime

1,250

1,300

1,350

1,375

1.85%

Gladsaxe

Secondary

775

850

900

925

2.78%

Prime

950

1,000

1,050

1,050

0.00%

The north corridor

Secondary

650

700

750

750

0.00%

Prime

950

950

950

950

0.00%

Birkerød

Secondary

600

600

600

600

0.00%

Prime

900

900

900

900

0.00%

Allerød

Secondary

650

650

650

650

0.00%

Prime

1,100

1,100

1,100

1,150

4.55%

Ballerup

Secondary

675

675

675

725

7.41%

Prime

1,200

1,250

1,250

1,250

0.00%

The west corridor

Secondary

650

700

700

700

0.00%

Prime

1,350

1,400

1,450

1,500

3.45%

Valby

Secondary

800

900

950

1,000

5.26%

Prime

1,600

1,700

1,750

1,800

2.86%

Carlsberg City Distric

Secondary

1,350

1,350

1,400

1,450

3.57%

Prime

1,350

1,450

1,500

1,550

3.33%

Sydhavn

Secondary

950

1,050

1,100

1,150

4.55%

Prime

1,500

1,500

1,500

1,500

0.00%

Amager

850

900

900

900

0.00%

Secondary

Prime

1,550

1,550

1,500

1,500

0.00%

Ørestad

1,000

1,000

950

950

0.00%

Secondary

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

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

19

Airport

Note: Rent levels quoted in DKK per sq m p.a., exclusive of operating costs and taxes, office, Copenhagen. 1 Includes Tuborg Havn. Source: Colliers

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

The north corridor Prime 1,050 Secondary 750

Allerød

Hørsholm

Birkerød/Allerød Prime

950 600

Secondary

Lyngby/Gladsaxe Prime

Ballerup Prime Secondary

1,700

1,150

Secondary

925

725

Lyngby

Hellerup 1 Prime Secondary

1,950 1,400

Nørrebro Prime Secondary

1,550

Ballerup

950

Østerbro Prime Secondary

The west corridor Prime

1,800 1,300

Frederiksberg Prime

1,250

Secondary

700

1,550

Copenhagen

Secondary

950

Carlsberg City District Prime 1,450 Secondary 1,800

Amager/Ørestad Prime

1,500

Secondary

900

Høje Taastrup

Valby Prime

1,500 1,000

Sydhavn Prime Secondary

Secondary

Greve

1,500 1,150

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

20

Kalvebod Brygge 32, Copenhagen V Photo: CBRE

Mærsk Tower, Copenhagen N

Copenhagen Metro, Ørestad

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

21

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

The north corridor Covering large areas along the motorway to Elsinore (Hel‑­ singør), the north corridor stretches across office parks in Vedbæk, Hørsholm, Nivå and Kokkedal, dating mainly from the 1980s. Located close to the motorway, the district benefits from good access by car, whereas access by public transport is limited due to the area not being connected to the S-train grid. Linking Elsinore in the north and Copenhagen in the south, the routing and stops of the coastal railway (Kystbanen) are not ideally located vis-à-vis the office areas in the north corridor, which are therefore hampered by relatively poor public transport options. Innovative measures are called for to re-brand and revitalise the district. So far, DTU Science Park in Hørsholm has been a successful initiative, offering single offices to large-scale office premises. The science park has become Denmark’s foremost deep-tech community with more than 290 high-tech R&D businesses. In recent years, DTU Science Park has seen a virtually constant rise in activity, today housing businesses like DHI, ALK, FMC and Chr. Hansen. Birkerød/Allerød Located some 25 km northwest of Copenhagen, the district of Birkerød/Allerød has several large-scale office areas of diverse quality, ranging from the obsolete to the more up-to-date. Some of the older office buildings used to serve as ancillary office units in connection with indus trial facilities. This property type has seen a decrease in demand over the past years as businesses have zoomed in on space-efficient and flexible premises. Notwithstanding S-train stations in Allerød and Birkerød, the office areas of the district have less than ideal access to public transport. Previously preferred by the IT sector, the district is therefore typically discarded because of its lack of high quality, space-efficient office premises close to public transport. The district is facing increased competition from alternative locations closer to Copenhagen with superior accessibility. This has slowed letting activity despite the availability of relatively up-to-date premises. Herlev/Ballerup The Herlev/Ballerup district has long been a preferred location for large-scale companies operating in the high-tech or financial services industries, with the Lautrupvang area attracting a great number of businesses.

Tenants in the area include GN Store Nord, Nets, IBM Danmark and KMD. Most recently, Novo Nordisk took an approx. 16,000 sq m office lease in the area. Furthermore, the district houses the successful World Trade Center (WTC) Ballerup, which is a 17,000 sq m modern business centre offering serviced offices. Thanks to the synergies of the location, including easy access to customers, skilled labour and varying degrees of knowledge sharing, Lautrupvang has attracted also inter national newcomers operating in the high-tech industries. NCC is building a new head office for German industrial giant Bosch on Telegrafvej. The head office extends to 10,000 sq m, with the construction with wooden columns and beams being an example of sustainable newbuilding. The less established office locations in the district have a relatively old building stock, constructed mainly in 1970– 1990, and like in other suburban office locations, offices are commonly laid out as ancillary offices with adjoining industrial facilities. Due to the inflexible layout of most premises as well as limited remodelling options, these locations suffer from weakening demand, and rent levels are among the lowest in the Copenhagen area in general. Even with the future light-rail link in place, it is difficult to envision a full-scale reactivation of the more secondary locations. The west corridor Stretching primarily across the towns of Glostrup, Brøndby, Albertslund and Høje-Taastrup, the west corridor has a relatively outdated office stock with many properties pre-dating the 1990s. Ancillary office units in connection with industrial facilities dominate the district, and due to their age, the buildings often have a highly inflexible layout. In addition, the district has a fairly large number of secondary office premises that attract little interest as they fail to meet today’s tenant requirements. As a result, vacancy rates have been on the rise in the district’s more secondary locations. However, it is worth mentioning that Novo Nordisk has moved into Danske Bank's former premises in Høje-Taastrup. The pharma ceutical giant has taken approx. 62,000 sq m on a lease with a 10-year non-terminability period. This marks one of the most significant lettings in the area's history.

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

22

However, prime locations in the west corridor offer good accessibility and low rent levels, making the district a sought-after back-office location. In addition, the opening of the Greater Copenhagen Light Rail in 2025 is expected to benefit the areas in and around Glostrup and Brøndby. Valby The district of Valby is currently undergoing massive trans formation, with former disused industrial facilities giving way to new attractive mixed-use commercial and resi dential areas that are expected to appeal to many tenants in the years ahead. The bright outlook is driven mainly by the area’s affordable rent levels, excellent accessibility as well as development opportunities. For instance, the area around Gammel Køge Landevej is currently being lifted, with former industrial facilities being converted into attractive office premises while preserving their industrial exterior. With København Syd (Copenhagen South, formerly known as Ny Ellebjerg station) as a future hub linking also to the Copenhagen Metro (presumably as from summer 2024), the area around Carl Jacobsens Vej has started to attract newcomers, including the Danish Building & Property Agency (Bygningsstyrelsen) as well as acclaimed archi tecture firm Bjarke Ingels Group (BIG). In 2023, Genmab moved into their new head office in a central location on the corner of Gammel Køge Landevej and Carl Jacobsens Vej, while DEAS is planning to relocate to its new head office, a DGNB Gold-certified property at Grønttorvet. The building was developed and completed by NREP. Carlsberg City District Bordering on Valby, Vesterbro and Frederiksberg, on the site formerly used by the Carlsberg breweries, the Carlsberg City District is one of the most exciting urban development zones in Copenhagen. The area has evolved to house multiple new and modern office spaces and domiciles in both historic and listed buildings as well as new builds. This contributes to a distinctive urban envi ronment, attracting a wide range of businesses. Relatively recent newcomers include Visma, taking an office lease of 20,000 sq m, and Roche, relocating to the Carlsberg City District in summer 2022.

In 2023, Boston Consulting Group relocated from Kalvebod Brygge to 10,000 sq m new office premises in a former industrial property, Rød Lagerbygning (red warehouse). In the same year, AstraZeneca announced their arrival in the Carlsberg City District when they moved into their new office space in Carolines Hus. In early 2024, Arla inaugurated their new office in the area, with their international sales office moving from Sluse holmen. The area benefits from easy access to public transport at Carlsberg station and the new metro station at Enghave Plads. Sydhavn Sydhavn (the south harbour) is home to multiple large scale tenants such as TDC, TV2, the National Social Appeals Board and Aalborg University. However, the area is today considered a more secondary office location due to its limited access to public transport. This is despite a building stock that is relatively new, although not newly constructed. However, in 2024, the M4 metro line will be extended, connecting Sydhavn with central Copenhagen and signif icantly improving the infrastructure in the area. At the same time, there is brisk activity here. In 2023, the Danish National Police moved into PFA's property on Frederikskaj and four labour unions are moving into a new large office building, scheduled for occupancy in 2026. Overall, this is expected to contribute to favourable developments in the district, which may well reposition itself as a more attractive office location in the future. Amager/Ørestad Located south of the Copenhagen CBD, the island of Amager benefits from proximity to the Copenhagen city centre and excellent infrastructure, with easy access to the motorway grid, railway links, two metro lines and Copen hagen Airport. Furthermore, the fixed links to Sweden and Avedøre Holme provide access to the rest of Scandinavia and large industrial areas, respectively. Ørestad is dominated by up-to-date, space-efficient prop erties, whereas other parts of Amager contain a large share of older office and production facilities. Locations such as Islands Brygge and Prags Boulevard have seen a dramatic transformation, with industrial properties converted into

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

23

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

up-to-date office premises but retaining many of their original features.

Most recently, in 2023, Telia moved to their new head quarters in Ørestad, close to both the airport and the Copenhagen city centre, while Novo Nordisk has also expanded their lease in the HUB1 office property with an additional 16,000 sq m, which they are expected to move into after summer 2024. Despite good infrastructure and a modern and up-to-date building stock, the office market in Ørestad has struggled with some vacancies compared to other Copenhagen office locations. This indicates that the area is not yet fully stabilised. A new development area near Copenhagen Airport, Scanport, is currently emerging. Hoping to leverage the proximity to Copenhagen Airport, the fixed link to Sweden and the metro line, Scanport plans to develop close to 66,000 sq m office space, including both head office and multi-user buildings as well as a hotel.

Ørestad has positioned itself as a key non-CBD office location and transport hub, still providing plenty of devel opment opportunities. The location caters to the require ments of a wide range of tenants in terms of space-effi ciency, flexibility and accessibility. Furthermore, the profile of the location is more low-key compared to some CBD areas, including Nordhavn, while still offering up-to-date office space at moderate rent levels. These factors have been crucial in establishing the area. Major office users in Ørestad include Nordea, Rambøll, and a string of international companies such as Nestlé, Q8 and 3M, taking advantage of the district’s unrivalled infra structure, with metro, train, direct motorway access, and its proximity to Copenhagen Airport.