Market Report 2022

Retail - Colliers Market Report 2022

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Nørreport

While parcel lockers are generating footfall in shopping centres, not being determined by location, location is of crucial importance to shops. With tourists gradually return ing and restrictions generally being lifted, shops have seen an increase in activity in the course of 2021, relative to 2020. Apart from the fallout of COVID-19, shopping streets continue to face multiple challenges, with mainly location becoming an increasingly important factor as visibility and footfall are becoming a crucial competitive parameter in a volatile market such as the retail market. Copenhagen The fierce competition for good locations has driven a wedge between landlord and tenant price expectations. As a result, we have witnessed an increase in retail vacan cies in the secondary (lower) end of Strøget, including the Frederiksberggade area, whereas there are less vacancies in the prime (upper) end of the Copenhagen high street, around Amagertorv. Another parameter impacting the Copenhagen retail landscape is the opening of Cityringen, the fourth leg of the Copenhagen Metro. Connecting the districts surrounding the city centre, the new metro line has provided a swift link to central Copenhagen, which is Location , location and location

expected to strengthen demand, e.g., at Strøget and the streets running off it. Gammel Strand metro station at Højbro Plads has improved access to the local area and increased footfall with a favourable effect on the demand for retail units in the area. Kongens Nytorv metro station is situated right below the Magasin department store, and several commuters tend to stroll through the store onto Strøget rather than walk along Kongens Nytorv and onto Østergade. Conversely, it has served to reduce cus tomer flows on the stretch of Østergade ending at the Bremerholm crossing. This may potentially pose a threat to future demand in this part of Strøget. In 2023, Denmark’s largest bank, Danske Bank, is vacating its Laksegade head office near Kongens Nytorv, paving the way for a major refurbishment scheme to make room for residential, F&B and retail premises. This is likely to further reduce foot fall on the stretch of Østergade ending at the Bremerholm crossing. A new hotspot may motivate more custom ers to go from Kongens Nytorv towards the new venue at Laksegade, and from there on to Strøget via Bremerholm. The resulting possible shift in customer flows from the upper end of Østergade could slightly exacerbate the threat facing this part of Strøget.

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Masterplan for Frederiksberggade in effort to spur demand To reverse the trend and lift Frederiksberggade, thereby positioning the location better to com pete with, e.g., Amagertorv, some private prop erty owners have partnered up to form a con sortium. By means of private funds as well as subsidies from the City of Copenhagen, the entire infrastructure of the street is to be upgraded. In addition, it is part of the strategy to target financially strong and high-profile tenants by offering them lease units at reduced prices to anchor them. Subsequently, the rent level may gradually be raised in connection with reletting as the revitalisation of the area progresses.

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City Hall Square (Rådhuspladsen)