Location descriptions. Industrial

Location descriptions Industrial/logistics

Published by Sadolin & Albæk. Reproduction or citation only with acknowledgement of source. The Copenhagen Market Report is based on market data that we believe are reliable. Whilst every effort has been made to ensure that the information provided in the report is both accurate and complete, Sadolin & Albæk accepts no liability for factual errors. Sign up for our quarterly newsletter for analyses and articles on the Danish commercial and investment property market on www.sadolin-albaek.dk ISSN 2245-2451 Sadolin & Albæk A/S | Palægade 2, DK-1260 Copenhagen C, Denmark | Skovvejen 11, DK-8000 Aarhus C, Denmark | sadolin-albaek.dk | +45 70 11 66 55

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Copenhagen Property Market Report 2018

Industrial/logistics Greater Copenhagen

Typical rent levels, Greater Copenhagen, industrial/logistics

Market Expectations

Change

2015

2016

2017

2018

2018

Prime

(1) Birkerød/Allerød Hillerød

450

450

450

450

0%

Secondary

300

300

300

300

0%

(2) Ballerup/Måløv

450

450

450

450

0%

275

275

300

300

0%

(3) Brøndby/Glostrup Herlev

475

475

475

500

5%

300

300

300

325

8%

(4) The south corridor

550

550

575

575

0%

325

325

325

325

0%

(5) Avedøre

525

525

525

525

0%

300

300

325

350

8%

(6) Amager/Kastrup

850

900

1000

1000

0%

300

300

325

350

8%

Note: Rent levels quoted in DKK per sqm p.a. exclusive of operating costs and taxes. Source: Sadolin & Albæk

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Copenhagen Property Market Report 2018

Frederiksværk

Hillerød

Typical industrial/ logistics rent levels

Note: DKK per sqm p.a., excluding operating costs and taxes.

Hørsholm

Allerød

(1) Birkerød/Allerød/Hillerød

Birkerød

Frederikssund

(2) Ballerup/Måløv

Lyngby

Ballerup

(3) Brøndby/Glostrup/Herlev

Copenhagen (København)

Glostrup

Høje-Taastrup

(4) The south corridor

(5) Avedøre

(6) Amager/Kastrup

Køge

Market expectation

Airport

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Copenhagen Property Market Report 2018

Industrial/logistics Greater Copenhagen

(1) Birkerød/Allerød/Hillerød Situated north of Copenhagen, the towns of Birkerød, Allerød and Hillerød generally feature a stock of built-to-suit production facilities that fail to meet today’s tenant requirements. Dating from the 1960s to 1980s, they typically comprise an ancillary office unit at the front and industrial/warehouse facilities at the back. As such, facilities are in very low demand and somewhat susceptible to structural vacancy. However, it is worth mentioning that the area has an important concentration of modern production facilities for pharmaceutical, biotech and medtech industries, including Novo Nordisk and Biogen. (2) Ballerup/Måløv Other districts include Ballerup northwest of Copenhagen, where the building stock largely resembles that of Birkerød/Allerød/Hillerød, i.e. typically with too large office components as well as insufficient ceiling heights and loading docks, etc., rendering them less suitable for today’s logistics purposes. (3) Brøndby/Glostrup/Herlev Typically located along the Ring Road 3 corridor west of Copenhagen, traditional Greater Copenhagen industrial districts start at Brøndby to the south, fanning out to Glostrup, Albertslund, Herlev and Gladsaxe. Developed some 50 years ago, more industrial properties in this area are becoming functionally obsolete. However, because of great infrastructure and proximity to Copenhagen, the area attracts increasing demand for last mile distribution centres from businesses that realise the importance of quick delivery to customers in the Copenhagen area, both in terms of groceries and traditional specialty goods. As a result, the demand for a location near large housing districts in the Copenhagen area may well eclipse the demand for state-of- the-art facilities.

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Copenhagen Property Market Report 2018

(4) The south corridor The south corridor running between Køge and Høje-Taastrup benefits from such 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 plan 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 Pareto Securities, PostNord, Lemvigh-Müller, Lidl, DKI Logistics, Netto and pharmaceutical company Nomeco, the latter with a new state-of-the-art facility to handle distribution to the domestic and Nordic markets. At Høje-Taastrup, Copenhagen Markets (Grønttorvet) comprises three large- scale warehouses with a total roofed-up area of 67,000 sqm on a 220,000 sqm site. It is the largest wholesale marketplace for fruit and vegetables in Scandinavia. (5) Avedøre The industrial district of Avedøre Holme south of Copenhagen is marked by a substantial proportion of outdated facilities. Nevertheless, Avedøre Holme benefits from an outstanding location right next to the E20 motorway, effectively cutting transport times to Copenhagen. As the district is somewhat isolated from the surrounding residential areas, environmental concerns are slightly less of an issue. Given its strong logistics location, Avedøre Holme could become a popular district if newbuilding opportunities arise in the future. It is currently being discussed whether to expand Avedøre Holme. Such an expansion could boost the area. (6) Amager/Kastrup In the Copenhagen area, Copenhagen Airport offers airside lease opportunities for airport-related businesses, a fairly slim market segment, however in strong demand because of increasing air cargo volumes.