Focus report Copenhagen - Colliers Denmark 2024

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

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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.