Market Report 2022

Colliers Market Report 2022

31

Case

Hotel Industrial/logistics Retail Residential Of f ice

However, demand for the area has weakened in recent years, with several develop ment sites standing idle for a prolonged period, unable to attract the amount of ten ant demand required to start development. This situation is underpinned by letting activity, with total office lets amounting to approx 19,700 sq m in 2021, although most vacancies are in top-modern and efficient buildings, including KLP’s newly completed approx 49,000 sq m HUBNORDIC scheme. Ørestad has long been the preferred location of many businesses, with existing office users in the district including mainly sales or administrative businesses and companies with a great many employees that reside south and west of Copenhagen. However, due to traffic issues along the motorway linking the island of Amager and Ørestad with Zealand and central Copenhagen as well as additional emerging districts offering the same qualities, the number of office vacancies in Ørestad is at an unprecedented high. Mainly the Valby district, having become part of the metro grid and seeing the expan sion of Ny Ellebjerg station, is expected to be a key rival location competing for the same tenants but at lower prices than offered in Ørestad. Furthermore, Valby benefits from a more well-established city environment and history, serving as an additional tenant magnet in the competition with Ørestad. Ørestad is by no means a district that has stopped evolving and attracting newcomers. Evident advantages and sought-after amenities such as excellent accessibility mainly in terms of public transport and airport proximity along with a modern, sustainable and space-efficient building stock will continue to have broad tenant appeal. However, competition will intensify as several new areas emerge as an alternative to Ørestad. Held together with the numerous development opportunities offered in Ørestad, we recommend maintaining a conservative approach to rent increase expectations in the area. In the short to medium term, the district may to some extent see prices come under slight downward pressure unless vacancy rates are brought down. Ørestad Ørestad, a long-established andwell-connected office district in proximity of central Copenha gen, continues to offer multiple possible build ing plots, just as several newly developed and up-to-date buildings have office space to let.

Made with FlippingBook - Online catalogs