Odense Locations MR2020

Location descriptions | Odense – Market Report 2020

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Industrial & logistics In Odense, prime industrial locations are concentrated around the E20 motorway in the south-eastern part of the city. Tietgenbyen was developed in 1999 by the City of Odense in response to the then mounting demand for industrial and logistics sites. Given its direct access to the E20, the area is ideally located and has attracted several major companies, including Davidsen Tømmerhandel, Kjær & Sommerfeldt and Danske Fragtmænd. Last but not least, the area will also be home to the 55,000 sq m Facebook data centre, which is expected to be completed in 2020. Moving further west along the E20 to Hjallese and Hestehaven, the former location of Roulunds Fabrikker, there is an industrial and logistics cluster where the COOP non-food distribution centre is the largest facility. Finally, there is an industrial cluster (recently expanded) south-west of Odense by Højme, home to several warehouse facilities, including GASA, DLF and Micro Matic. Against the backdrop of consumer trends changing towards online shopping, prolonged economic growth and declining overall vacancy rates in the industrial/logistics segment, the segment is flourishing. We therefore expect increasing rent levels in prime locations. According to ICP, Rosengårdcentret posted a turnover of approx DKK 2.1bn in 2017, making it the fourth-largest shopping centre in Denmark in terms of sales. Together with a number of other shops at this location, including home furnishings store IKEA and a Bilka hypermarket, this very successful shopping centre is drawing substantial customer flow to the area from Funen and parts of southern Jutland, an extensive catchment area.

INDUSTRIAL/LOGISTICS*

Change

Market Expectations

Typical rent levels

2017

2018

2019

2020

2019-20 2020

350 225

375 250

375 250

425 250

13%

Prime

Odense

0%

Secondary

1 Industrial includes production, storage and logistics facilities. 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