Focus report Copenhagen - Colliers Denmark 2024

INDUSTRIAL AND LOGISTICS - COLLIERS FOCUS REPORT COPENHAGEN 2024

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formed into a new residential area. The first residents have long since moved in, with a total of 2,000 new resi dential rental units expected to be completed in 2025. The south corridor The south corridor running between Køge and Høje Taastrup is considered a prime logistics location as it benefits from easy motorway access (the E20), linking to Copenhagen, all parts of Zealand as well as Jutland, Sweden and Germany. As the corridor is an important location for industrial and storage/logistics facilities, local planning provisions are up to date and in line with today’s requirements. This allows for the construction of efficient facilities standing up to 30 metres tall in selected commercial districts sized for heavy-goods vehicles. At Køge, Scandinavian Transport Center (STC), continues to attract financially strong tenants looking for logistics facilities. Tenants include PostNord, Lemvigh-Müller, Lidl, DKI Logistics and Netto. At STC, Logicenters, owned by NREP, is currently developing a logistics centre, which is expected to include 68,000 sq m logistics facilities with a built-to-suit cross-dock terminal. BHS Logistics was

the first tenant to move into the new logistics centre in spring 2022, followed by Movianto, taking a 16,000 sq m lease in the new logistics centre. Most recent newcomer, Dutch company Bedrocan, took a 13,000 sq m lease here in 2023. Based on sustained demand for vacant commercial land in the area, Køge Municipality adopted a local plan in 2023 that allows for the establishment of a new commercial district south of Egedesvej close to STC. Extending to 36 ha, the district allows for a building percentage of 50%. At Høje-Taastrup, Copenhagen Markets (Grønttorvet) comprises three large-scale warehouses with a total roofed-up area of 67,000 sq m on a 220,000 sq m site. It is the largest wholesale marketplace for fruit and vege tables in Scandinavia. In Greve, CBRE Investment Management has now obtained full ownership of MG Park Greve. Currently, fully let areas total around 52,000 sq m, with approx. 52,000 sq m warehouse and 2,600 sq m office space still to be built. CBRE Investment Management's acqui sition of the remaining space in the area was structured

A year of yield decompression

10%

9%

8%

7%

6%

5%

4%

3%

19 Short lease, prime

20

21

22

23

24

Short lease secondary

Long lease, prime

Long lease, secondary

Note: Net initial yields, industrial and logistics, Copenhagen. Level in 2024 indicates Colliers' estimation at year-start. Source: Colliers