Market Report 2022

Office - Colliers Market Report 2022

22

Decline in office vacancy rates in Denmark’s key markets

10% 12% 14%

0% 2% 4% 6% 8%

15 10 Copenhagen Greater Copenhagen Aarhus 14 13 12 11

16

17

18

19

20

21

Note: Vacancy rates, office, Denmark. Source: Ejendomstorvet.dk

Old obsolete premises the most vacancy prone The strong demand is feeding through also to vacancy rates, which are downtrending in all parts of Denmark. Having seen a slight increase at the start of the pandemic, vacancy rates are either lower or on a par with the level seen prior to the COVID 19 outbreak. Vacancy rates of 7-8% in Copenhagen and Aarhus indicate a market with fair supply and demand equilibrium. However, this does not tally with actual market observations of strong competition, ever shorter re-letting periods and climbing rent

levels, indicating a market where supply is outstripped by demand. A review of premises that are vacant or offered to let in Copenhagen, however, paints a more complex picture. A breakdown of the currently available Copenhagen offices therefore reveals that most vacancies are in properties pre-dat ing the millennium. As for the post-millennium office stock, mainly Copenhagen S, including Ørestad. accounts for vacancies, with only few large scale properties driving up the volume. This district harbours more than half (approx 58%) of the total number of office

Low supply of contemporary office supply in central Copenhagen

Copenhagen S Copenhagen V Copenhagen K

Northern Zealand Vestegnen (west of Cph.) Other Nordhavn/Copenhagen Ø

0

50,000

100,000

150,000

200,000

Built in or pre-2000

Built post-2000

Note: Office space offered to let (sq m) in Copenhagen and environs as of 28 December 2021 based on unique office lets. Breakdown of supply by location and construction year of premises. Source: Ejendomstorvet.dk