Odense Locations MR2020

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Location descriptions | Odense – Market Report 2020

Retail

The Odense retail property market is divided into two sub-markets: the pedestrian shop- ping street area in the city centre and the south-east shopping area surrounding the Rosengårdcentret shopping centre. The latter is highly successful and sees increasing footfall, but the city centre remains challenged by increased online shopping. Top high- street locations are thriving and attracting strong occupational demand. However, the most highly coveted stretch of the high street seems to be shrinking, and today most activity centres on Vestergade and the southern end of Kongensgade. Prime retail premises command rents of around DKK 5,100 per sq m p.a., excluding taxes and operating costs, while the rent is around DKK 2,500 per sq m p.a. in secondary loca- tions. However, at Kongensgade it is possible to find shops to let at rents as low as DKK 1,200 per sq m p.a. Like other major Danish cities, Odense has seen significant growth in the F&B (food and beverage) segment. New cafés, eateries and restaurants have been able to absorb a substantial amount of vacant retail space, as consumer trends shift from consumption of goods towards consumption of experiences. Despite this, the retail segment is challenged by increased online shopping. The northern end of Kongensgade was expected to be revitalised in conjunction with the scheduled completion of the shopping centre VIVA by Steen & Strøm in 2015. However, the construction has been delayed, and it is uncertain when construction will start, and what it will entail. Originally, the centre was expected to comprise 42,000 sq m, distrib- uted on more than 100 units. If built, it can be expected that VIVA will put additional pres- sure on the shops in the city centre, despite increasing total footfall in the area.

RETAIL

Change

Market Expectations

Typical rent levels

2017 5,400 2,500

2018 5,300 2,500

2019 5,300 2,400

2020 5,100 2,400

2019-20 2020

-4%

Prime

Odense

0%

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