MR 2018

25

Copenhagen Property Market Report 2018

Indoor climate, landlord and price important to both small and large tenants ...

... Access to public transport another important value driver

0-49 employees

0-49 employees

52% Good accessibility by car

62% Indoor climate

61% Price

53% Good parking facilities

36% Adjustment options

20% Sustainibility

65%

39%

38% Proximity to Metro or S-train

Confidence in landlord

Flexibility of lease agreement

1

2

8

9

10

17

3

4

5

50+ employees

50+ employees

47% Conditions on arrival

55% Price

51% Good parking facilities

66% Confidence in landlord

75%

Adjustment options 45%

Sustainibility 31%

46%

40%

Indoor climate

Flexibility of lease agreement

Proximity to Metro or S-train

1

2

3

4

5

7

8

10

14

Note: The results do not add up to 100% as the respondents were given 24 reply choices in total. Base = 600 surveyed. 375 respondents in the 0-49 employees category, 225 in the 50+ category. All interviews were conducted as telephone interviews by Megafon A/S on behalf of Sadolin & Albæk and It’s A Fact ApS. Source: Sadolin & Albæk

However, it is possible to cater to many of these requirements in the early development phases by giving more attention to fittings and space planning. Reconstruction works and alterations, in particular those involving installations, to satisfy new tenants’ demands are costly and require substantial investment, unless already factored in at the time of construction. For instance, a stable indoor climate requires well-functioning installations, operational not only in the planned setup but also in potential future setups, if substantial investments in rearrangements are to be avoided. Costly refitting of inflexible spaces So far, developers have tried to reduce potential reconstruction costs to a bare minimum by providing new office buildings with flexible space utilisation, where room divisions and interior layout may relatively quickly and at low cost be adjusted to match the requirements of new tenants. However, due to insufficient focus on the flexibility and scalability of mainly installations, we see relatively new buildings, completed only 10-15 years ago, which may already be labelled functionally obsolete. It is a very costly affair to update such buildings to meet modern tenant demands. The upgrade of KMPG’s new head office at Dampfærgevej on the Copenhagen waterfront serves as an example of such cost-intensive reconstruction, with the most costly items including rearrangement/repair of installations and a change of ceiling height. In the new Microsoft head-office premises in Lyngby, however, installations,