Market Report 2022

Colliers Market Report 2022

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Hotel Industrial/logistics Retail Residential Of f ice I i & logistik D Bolig Kontor

indicate stronger demand, with supply only able to keep up to a certain point due to the shortage of suitable building sites, mainly in prime locations in proximity of Greater Copenhagen and Aarhus, while the owners of existing building sites gener ally have explored the possibility of built-to-suit developments based on pre-lets rather than opting for speculative building. COVID-19 increasing the focus on supply chain management and volume of e-commerce In direct response to the increasing uncertainty surrounding deliveries from abroad, the risk management of supply chains has also come to the fore. An increasing number of players have come to realise the advantage of having buffer stocks in Denmark to quickly meet an increase in demand. In addition, freight rates have been soaring to almost eight times their former level because of the strong demand. Various events, apart from national COVID-19 lockdowns, have also exposed the risk of potential supply chain disruptions, e.g., the

blocking of the Suez Canal that largely paralysed global trade for days on end.

Furthermore, the coronacrisis has boosted e-commerce sales, which already boomed in 2020, hitting a new record high of DKK 154 billion, up by 6% on 2019, with preliminary forecasts predicting a 10% increase in 2021. The boom in e-commerce has in turn fuelled the demand for storage and logistics facili ties for the storage of goods in the categories of home, garden, home electronics, whitegoods, groceries, etc. The growth is driven by a change in Danish consumer patterns. In 2020, the Danish Chamber of Commerce reported that, today, ease and convenience are the main reasons why we pre fer to shop online, whereas in the past price and selection were the determining factors. Although the outlook for 2022 does not predict the same high growth rates as seen in the preceding two years, there are several indications of continued e-commerce growth, albeit at a slower pace than prior to the coronacrisis.