Odense Locations MR2020

Location descriptions | Odense – Market Report 2020

3

Office

Prime office premises in Odense are concentrated around the harbour area and the city centre, where a number of offices are found. The city centre offers only a modest number of large prime office properties and few major office workplaces. At the harbour, the primary office employers include Deloitte, Alectia, EY, Codan, Willis Towers Watson, Rambøll and Nørgård Mikkelsen. Offering office premises that meet today’s tenant requirements, this location still harbours development potential, and we expect to see further office newbuilding. However, developers have been cautious when it comes to new office starts in Odense. This does not apply to residential construction, with several development schemes in the pipeline for the Odense harbour area. Altogether, they will help to make the area a vibrant and attractive location. Another district which is currently undergoing development into a future high-quality office location is Cortex Park. A superhospital is scheduled to open in 2022, and the area is located right next to the University of Southern Denmark. As such, it is expected to attract knowl- edge-intensive businesses in the technology, research and innovation cluster that will find it easy to recruit from the resident pool of university students. Fully developed, the 200,000 sq m area is will be transformed into a dynamic new neighbourhood with a total of 60,000 students, academics, residents and employees. Barfoed Group is in the process of constructing the second stage of Munkebjerg Park, on completion adding 6,500 sq m new office and retail space to the area. Prime office space in the harbour areas are currently believed to command rents of some DKK 1,200 per sq m p.a., excluding taxes and operating costs. Central Odense office rents have been stable around DKK 600-800 per sq m p.a., excluding taxes and operating costs. Due to the current large oversupply of secondary office space, concessions are generally made for new leases.

OFFICE

Change

Market Expectations

Typical rent levels

2017 1,100

2018 1,100

2019 1,200

2020 1,250

2019-20 2020

4% 0%

Prime

Odense

750

750

750

750

Secondary

Note: Rent levels quoted in DKK per sq m p.a. exclusive of operating costs and taxes. Market expectations indicate trend forecast for the next 12 months. Source: Colliers