Odense__Locations_Online_MR19

Copenhagen Property Market Report 2019

7

Industrial & logistics In Odense, prime industrial locations are concentrated around the district of Tietgenbyen south-east of the city. This district 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 sqm 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 south-west of Odense by Højme, home to several warehouse facil- ities, 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. Despite this, we do not expect an increase in the prime industrial rent, which is estimated to remain stable at a level of DKK 375 per sqm p.a., excluding taxes and operating costs. By comparison, the rent level in secondary proper- ties has increased, now estimated at DKK 250 per sqm p.a. According to ICP, Rosengårdcentret posted a turnover of approximately DKK 2.2 bn 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 catch- ment area.

INDUSTRIAL/LOGISTICS*

Change

Market Expectations

Typical rent levels

2016

2017

2018

2019

2018-19 2019

325 225

350 225

375 250

375 250

0% 0%

Prime

Odense

Secondary

1 Industrial includes production, storage and logistics facilities. Note: Rent levels quoted in DKK per sqm p.a. exclusive of operating costs and taxes. Market expectations indicate trend forecast for the next 12 months. Source: Colliers International