Focus report Copenhagen - Colliers Denmark 2024

INDUSTRIAL AND LOGISTICS - COLLIERS FOCUS REPORT COPENHAGEN 2024

51

INDUSTRIAL/LOGISTICS RETAIL RESIDENTIAL OFFICE

bility, although there is still a lot of uncertainty associated with this scenario. We are already seeing an increase in demand from investors in locations that are expected to benefit from the Fehmarnbelt link. For example, Lolland Municipality has already sold out the first stage of Maribo Business Park. Ringsted's new business park, Ringsted Business Park, is another example. Initially, it was hoped that all the plots would be sold by 2035, however, the business park is close to being sold out 12 years ahead of schedule, emphasising the high demand. For the same reason, Ringsted Municipality is looking into establishing another business park. Sound investor demand Historically, the Danish investment market for industrial and logistics properties has been relatively immature, and it is only in recent years that foreign investors, encouraged by the strong user market, have developed a greater appetite for the Danish market. This has helped to bolster investment activity in the industrial and logistics segment in 2023, which did not experience a slowdown on the scale seen in other segments. The attractiveness of the industrial and logistics segment was confirmed in 2023 when it – for the first time ever – was the second-largest segment in terms of investment volume.

Because of rising interest rates, yield requirements for industrial and logistics properties let on long leases have generally increased over the past 12 months in Greater Copenhagen. However, the rate of increase has been more moderate here than in several international markets. This is because the segment has become more professionalised, but the prospect of a limited number of attractive development opportunities near Copenhagen also plays a significant role. Industrial and logistics properties let on short leases typically trade at higher yields and are therefore less susceptible to interest rate movements. Furthermore, the prospect of rent increases on industrial and logistics properties in last mile locations close to Copenhagen, due to supply constraints, has counteracted significant yield increases. The strong occupational market and a bright outlook for industrial and logistics properties in Greater Copen hagen are expected to ensure continued massive investor interest from domestic and foreign investors alike in 2024. In the next 12 months, investment activity will therefore largely depend on how many attractive properties and portfolios the current owners want to put on the market.