Focus report Copenhagen - Colliers Denmark 2024

OFFICE - COLLIERS FOCUS REPORT COPENHAGEN 2024

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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%

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Copenhagen

Copenhagen environs

Greater Copenhagen

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