Office Locations MR2020

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Location descriptions | Office – Market Report 2020

 The north corridor Covering large areas along the motorway to Elsinore (Helsingør), the north corridor stretches across office parks in Vedbæk, Hørsholm, Nivå and Kokkedal, dating mainly from the 1980s. Located close to the motorway, the district benefits from good access by car, whereas access by public transport is limited as the area is not connected to the S-train grid. Linking Elsinore in the north and Copenhagen in the south, the routing and stops of the coastal railway (Kystbanen) are not ideally located vis-à-vis the office areas in the north corridor, which are therefore hampered by relatively poor public transport options. Innovative measures are called for to re-brand and revitalise the district. So far, the science and technology park of Scion DTU in Hørsholm has been a successful initiative. With supply ranging from single offices to large-scale office premises, activity has picked up in the business park and been fairly constant in recent years.  Birkerød/Allerød Located some 25 kilometres north-west of Copenhagen, the district of Birkerød/Allerød includes several large-scale office areas of diverse quality, ranging from the obsolete to the more up-to-date. Some of the older office buildings served as ancillary office units in connection with industrial facilities. This property type has seen a decrease in demand over the past years as businesses have zoomed in on space-efficient and flexible premises. Despite being connected to the S-train grid at Allerød and Birkerød stations, access to public transport is deemed less than ideal vis-à-vis the office areas in the district. Previously preferred by the IT sector, the district is therefore typically discarded because of its lack of high-quality, space- efficient office premises close to public transport. As a result, vacancy rates have started to climb, driving down prime and secondary rent levels alike. The district is facing increased competition from alternative locations closer to Copenhagen with superior accessibility and this has limited letting activity despite the availability of relatively up-to- date premises.  Herlev/Ballerup The Herlev/Ballerup district has long been a preferred location for large-scale companies operating in the high-tech industries

or financial services, with the Lautrupvang area attracting a great number of businesses. Tenants in the area include GN Store Nord, Nets, Bluegarden, IBM Danmark and KMD. Furthermore, the district houses the successful World Trade Center (WTC) Ballerup, which is a 17,000 sq m modern business centre offering serviced offices. Thanks to the synergies of the location, including easy access to customers, skilled labour and varying degrees of knowledge sharing, Lautrupvang has attracted also international newcomers operating in the high-tech industries. The less established office locations in the district have a relatively old building stock, constructed mainly in 1970–1990, and like in other suburban office locations, offices are commonly laid out as ancillary offices with adjoining industrial facilities. Due to the inflexible layout of most premises as well as limited remodelling options, these locations suffer from weakening demand, and rent levels are among the lowest in the Copenhagen area in general. Even with the future light-rail link in place, it is difficult to envision a full-scale reactivation of the more secondary locations.  The west corridor Stretching primarily across the towns of Glostrup, Brøndby, Albertslund and Høje-Taastrup, the west corridor contains a relatively outdated office stock with many properties pre-dating the 1990s. Ancillary office units in connection with industrial facilities dominate the district, and due to their age, the buildings often have a highly inflexible layout. In addition, the district contains a fairly large number of secondary office premises that attract little interest as they fail to meet today’s tenant requirements. As a result, vacancy rates are soaring in the district, especially in secondary locations. Infrastructure upgrade initiatives or investments in the properties are not expected to significantly improve the situation. However, prime locations in the west corridor offer good accessibility and low rent levels, making the district a sought-after back-office location.  Valby The district of Valby is currently undergoing massive transformation, with former disused industrial facilities giving way to new attractive mixed-use commercial and residential areas.