MR 2018

56

Copenhagen Property Market Report 2018

In focus: Shopping centres

Transaction activity in the shopping centre segment reflects stronger investor demand from abroad. The Capital Region of Denmark has the highest concentration of shopping centres. Of the total number of shopping centres in Denmark, 39% are located in this region, equivalent to 46% of total GLA. 24% Shopping centre share of total retail spend in 2016.

Just like other segments of the Danish retail market, the shopping centre segment is undergoing a transition these years, with several shopping centres readjusting concepts and offerings to match new and ever-changing customer patterns. Denmark has a total of 114 shopping centres with a GLA of 5,000+ sqm, most of them located near major towns and cities. Geographical distance is seemingly becoming less of an issue to shopping centre customers, provided the shopping centres manage to deliver a varied and resilient offering of shops, including F&B (food & beverage) and necessity-driven retail like grocery stores, and exciting leisure experiences to outrival the local high street. Shopping centres accounted for 24% of the total retail spend in 2016, and their market share is expected to increase in the years ahead, driven by a general change in shopping patterns in favour of an attractive mix of shopping, F&B and leisure opportunities, in short the overall “shopping experience”. User experience key to retaining business The ongoing transition process in the Danish shopping centre market is expected to prevail for some years to come. In the past, shopping centres were characterised by a fairly one- sided focus on the mix of traditional retail tenants, with no or a limited number of leisure activities. The growth of e-commerce has transformed the retail landscape, however, in the process changing shopping patterns and requiring shopping centres to upgrade to attract and retain both customers and retailers. We believe that the future of shopping centres lies in the merging of user experience, technology and design. Indeed, several shopping centres have endeavoured to reinvent their concepts and offerings, investing in add-on activities such as F&B which has become a key shopping experience ingredient. For instance, Frederiksberg Centret has expanded in recent years, enhancing its F&B selection and parking conditions. Similarly, Rødovre Centrum is undergoing a 5,000 sqm expansion scheme, with the first stage opening in autumn 2017 and the second being scheduled for completion in April 2018. Overall, the expansion involves several F&B units, some 25 new retail units and 600 parking spaces. In addition, shopping centres have generally increased their line up of leisure activities, including indoor play centres, cinemas, fitness centres, etc. F&B remains the strongest and most sought-after non-retail component overall, whereas leisure activities are developed mainly in the biggest (regional) shopping centres.

Field’s is currently rethinking its general concept to include a trampoline park, scheduled to open in spring 2018. This will increase the non-retail component of Field’s