Copenhagen’s office stock is estimated at 10.7 million m2, including some 3 million m2 in the city centre. New additions are equivalent to around 90,000 m2 and are almost exclusively in the harbour areas and Ørestad.
The individuel characteristics for each of the districts in the Copenhagen Region can be seen on Copenhagen Location a - subsite to copcap.com.
Investment market
According to CB Richard Ellis recent market view "Nordic Offices”, investor interest in the Copenhagen region remains strong. There are increasing financing possibilities both from domestic and internal players entering the market place.
Yields for prime space have, according to CBRE remained robust with a continued average of 6.25 per cent, with a few recent deals completed with yields of less than 6 per cent.
Investor interest demonstrates a confidence that the market is buoyed by the possibility of an upswing and increasing rent levels on the horizon. Yield performance is expected to maintain as investor interest remains strong, but with quality supply still the major issue.
The Danish Property Federation initiates and supports research and development activities on property investments. The federation has created the system of benchmarking for costs and returns on Danish property investments (Dansk Ejendomsindeks).
The total value of the properties covered by the Databank results for 2004 was DKK 69bn, representing 39% of the value of the holdings of the financial institutions and quoted property companies.
|
Total return - % per year
|
|
All property
|
Retail
|
Office
|
Other Commercial
|
Residential
|
|
2000
|
10.2
|
9.6
|
11.4
|
9.8
|
7.5
|
|
2001
|
11.4
|
9.4
|
10.7
|
12.6
|
15.0
|
|
2002
|
9.4
|
10.4
|
7.7
|
10.3
|
13.8
|
|
2003
|
7.3
|
7.1
|
6.2
|
5.7
|
10.9
|
|
2004
|
6.3
|
7.0
|
4.7
|
7.7
|
10.9
|
Rental market
CBRE finds that overall activity in the letting market has remained modest, but there are enough increased signs of enquiry and search activity in the market to suggest a revival from the weak activity over the summer.
In particular there has been an increased demand for lease areas of approx. 500 -1000 m2, with one or two larger properties also being let. This could imply that the letting market is recovering in line with an initial upswing in the economy, and with a decrease in development activity the vacancy rate has recently dropped.
Links:
CBRE, CB Richard Ellis: www.cbre.com
Investment Property Databank: www.ipdglobal.com
The Danish Property Federation www.ejendomsf.dk
Factsheet:
The Copenhagen property market
