Market Report 2022

Colliers Market Report 2022

23

Hotel Industrial/logistics Retail Residential Of f ice

DOKK1, Aarhus C

vacancies offered to let in Copenhagen properties constructed after 2000.

increase in supply are some of the factors explaining not only why Copenhagen CBD office rent levels have hiked by more than 10% since 2019 but also why they are expected to see a relatively sharper increase than other districts of Copenhagen and Denmark in general in the years ahead. Unlike the trend seen in Copenhagen, the increase in rent levels in other Danish locations is driven by strong economic growth momentum and general optimism. During economic upturns, tenants generally tend to be more willing to pay for the “right” office premises, with businesses likely to commit sooner rather than later to avoid that their physical setting hampers growth. Examples of this are seen in several major towns and cities, including Odense, Aalborg, Vejle and Esbjerg, where activ ity has been strong in the letting market, with multiple busi nesses taking leases on new premises, having outgrown their former ones.

Rent level continues to climb – in all locations Low vacancy rates, strong economic growth momentum along with general optimism about the future are driving up office rent levels across Denmark. In central Copenhagen and Aarhus, businesses are finding it difficult to find the right premises, and although attractive alternative options are available in non-CBD locations, demand has become nothing but stronger in the city centres. Mainly businesses poised for further growth in the liberal pro fessions and knowledge-intensive industries, who strive to attract young and skilled workers, prefer a central location with city life, culture and public transport within easy reach. A shortage of available office leases in tandem with a moderate

Largest available office leases in individual properties, Copenhagen

Address

Location

Sq m Constructed in

Copenhagen S (Ørestad)

40,000

2021

Kay Fiskers Plads 10

Copenhagen K

24,000

1999

Strandgade 3

Copenhagen Ø

13,700

1993

Østbanegade 121

Kongens Lyngby, Greater Copenhagen

10,700

1978

Nymøllevej 85

Copenhagen S

9,000

2010

Njalsgade 72

Note: Individual properties accounting for the largest office vacancies (sq m) offered to let in Copenhagen and environs as of 28 December 2021. Source: Ejendomstorvet.dk, Colliers