Market Report 2022

Colliers Market Report 2022

27

Hotel Industrial/logistics Retail Residential Of f ice

Ferring/Neroport, Ørestad, Copenhagen S.

likely to see increased vacancy risk and/or lower rent levels in the secondary market in the short to medium term. The time is therefore ripe for property investors to review their asset man agement strategies for properties that could be at risk, and to consider initiatives to reduce this risk. More than ever, the value of properties in this risk zone will hinge on the existing tenancy situation, making an extension of non-terminability periods and possible tenant incentives an obvious place to start. Lack of Copenhagen CBD opportunities causes geographical shift in demand The Copenhagen CBD letting scene is very different from any other Danish letting market as the demand for CBD office space outstrips demand. As a result, tenants are left with lim ited options at high prices. Several districts that used to see moderate development are now coming into play as alterna tive locations to the Copenhagen CBD. Valby is one of the districts expected to see a particularly strong increase in newcomers in the coming years as redevelopment progresses in the area. Here, factors like a relatively low rent, excellent connectivity by public and private transport along with ample newbuilding opportunities constitute a cocktail that appeals to many tenants and developers. All factors weighed in when domestic biotech company Genmab decided to relocate

from Kalvebod Brygge, Copenhagen CBD, to new, state-of-the art premises in Valby in 2023.

Some of the same qualities are offered in the Copenhagen NV district, which is transforming these years. Despite the resi dential conversion of a large portion of the district’s distinctive dated production and office facilities, premises are increasingly rearranged to serve as up-to-date offices with a New York-style industrial décor that command relatively high rent levels. In addition, Copenhagen development areas such as Nordhavn (north harbour), Jernbanebyen and Sydhavn (south harbour)/ Havneholmen are expected to add substantial new supply in the coming years, likely offering a contemporary and attrac tive alternative to the most central Copenhagen locations, not least due to their access to the metro and/or S-train grid and the developer community’s sharp focus on space-efficient, modern and sustainable buildings. Except for Jernbanebyen, the areas have already been partly developed, attracting substantial interest and activity in 2021. At Havneholmen, the CPH Highline office building is virtually fully let one year post-completion, while the Spidsen (“the tip”) office property at Nordhavn is already fully let despite not being ready for occupancy until 2023.