Focus report Copenhagen - Colliers Denmark 2024

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

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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