MARKETUpdate Q1 2023 Residential rental Office Retail Industrial Market rent GDP growt Employment Rates Consumer confidence Availability Yield International Poul Erik Bech
The Danish economy
After a GDP decline of 2% in 2020, due to Covid-19-related closures, the Danish economy saw strong growth in 2021, with an annual real growth rate of 4.9%. This progress was supported by the reopening of several service industries and was in line with forecasts. The preliminary calculation of GDP growth for 2022 is 3.6%, which is partly due to a single companyβs investment in a patent in November 2022. The latest forecast from Danmarks Nationalbank shows an expected growth of -0.1% and 1.2% in 2023 and 2024. The estimate for GDP growth this year and next year is slightly lower than the last forecast, and thus indicates the prospect of a mild recession.
Interest rates have increased significantly in 2022, and the short mortgage rate has continued to increase in 2023. The upward pressure on interest rates can be linked to a combination of several factors, such as central banks trying to tame historically high inflation. Additionally, the war in Ukraine and the coronavirus pandemic are also significant contributors to high inflation. The long mortgage rate has been increasing over the past month and is currently at 4.60% as of February 2023. The short-term mortgage rate has also been increasing and is currently at 3.11% for February 2023.
Consumer confidence indicates the populationβs view of its current and future economic situation and is thus a good indicator of how the general population is affected by Denmarkβs economic situation. Consumer confidence in February was at minus 25.1 and has thus increased since January, where it was at minus 26.1. The average for the past six months is minus 29.1. Three out of five indicators that together make up consumer confidence have increased since last month.
Source: Statistics Denmark
The latest figures from Statistics Denmark for December 2022 show an increase in the number of employees by 1,810 persons, which corresponds to a 0.06% increase compared to November levels. The sectors experiencing the most significant increase in the number of employees were energy supply, public administration, defense, and police. Despite a decline in July, the number of employees remains at peak levels. Since December 2021, the number of employees has increased by 60,193 people.
Annual
Interest rates
GDP growth
Consumer confidence indicator Source: Statistics Denmark
Nationalbanken Source:
Denmark Source: Statistics Denmark -40 20 10 0 -10 -30 -20 2004 2006 2008 2010 2014 2012 2016 2018 2020 2002 2022 2005 2007 2009 2011 2015 2013 2017 2019 2021 2003 2023 2001 2000 Short-term mortgage rate Long-term mortgage rate -1% 2% 6% 1% 4% 0% 2013 2014 2015 2016 2018 2017 2019 2020 2021 2012 2022 3% 5% 2023 -3% 0% 4% 5% 2013 2014 2015 2016 2017 2018 2020 2019 2021 2022 2% -2% 2012 2024 0.2 0.9 1.6 2.3 3.2 2.8 2.0 -1% 3% 1% -2.0 2023 1.5 1.2 -0.1 4.9 2.0 Real growth in BNP compared to previous year (pct.) Expected real growth in BNP compared to previous year (pct.)
and
Finance Denmark & Statistics
Employees
2.5 2.6 3.0 2.7 Million 2011 2013 2014 2015 2016 2018 2017 2019 2020 2021 2.9 2.8 2022 2012
Residential rental
newer properties
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Area Prime Secondary Tertiary Trend Central Copenhagen Yield in % 3.50% 3.75% 4.25% ο Annual market rent in DKK/sq m 2,550 DKK 2,200 DKK 2,000 DKK ο Γsterbro, Frederiksberg and Gentofte Yield in % 3.50% 3.75% 4.00% ο Annual market rent in DKK/sq m 2,450 DKK 2,100 DKK 1,950 DKK ο Harbour areas Yield in % 3.50% 3.75% 4.00% ο Annual market rent in DKK/sq m 2,400 DKK 2,000 DKK 1,800 DKK ο Γrestad Yield in % 3.75% 4.00% 4.50% ο Annual market rent in DKK/sq m 1,900 DKK 1,800 DKK 1,700 DKK ο Remaining Copenhagen Yield in % 4.00% 4.25% 4.75% ο Annual market rent in DKK/sq m 2,300 DKK 2,000 DKK 1,800 DKK ο Western suburbs Yield in % 4.25% 4.75% 5.25% ο Annual market rent in DKK/sq m 1,750 DKK 1,600 DKK 1,500 DKK ο Northern suburbs Yield in % 3.75% 4.25% 5.00% ο Annual market rent in DKK/sq m 2,000 DKK 1,750 DKK 1,500 DKK ο North Zealand Yield in % 4.25% 5.00% 6.00% ο Annual market rent in DKK/sq m 1,900 DKK 1,650 DKK 1,400 DKK ο East Zealand Yield in % 4.25% 5.00% 6.50% ο Annual market rent in DKK/sq m 1,900 DKK 1,600 DKK 1.300 DKK ο West Zealand Yield in % 5.00% 6.25% 7.25% ο Annual market rent in DKK/sq m 1,500 DKK 1,300 DKK 1,000 DKK ο South Zealand Yield in % 5.00% 6.25% 7.50% ο Annual market rent in DKK/sq m 1,350 DKK 1,100 DKK 950 DKK ο Odense Yield in % 4.50% 5.00% 5.50% ο Annual market rent in DKK/sq m 1,475 DKK 1,275 DKK 1,100 DKK ο Other Funen Yield in % 5.00% 5.75% 6.50% ο Annual market rent in DKK/sq m 1,250 DKK 1,100 DKK 950 DKK ο Vejle Yield in % 5.00% 5.50% 6.25% ο Annual market rent in DKK/sq m 1,375 DKK 1,225 DKK 1,000 DKK ο Kolding Yield in % 5.25% 5.75% 6.75% ο Annual market rent in DKK/sq m 1,300 DKK 1,150 DKK 950 DKK ο Fredericia Yield in % 5.50% 6.00% 6.75% ο Annual market rent in DKK/sq m 1,200 DKK 1,100 DKK 875 DKK ο Esbjerg Yield in % 5.25% 6.00% 6.75% ο Annual market rent in DKK/sq m 1,200 DKK 1,050 DKK 900 DKK ο Other South Jutland Yield in % 6.00% 6.75% 7.25% ο Annual market rent in DKK/sq m 1,150 DKK 900 DKK 750 DKK ο Aarhus Yield in % 3.75% 4.50% 5.00% ο Annual market rent in DKK/sq m 1,800 DKK 1,550 DKK 1,350 DKK ο Silkeborg Yield in % 4.75% 5.75% 7.25% ο Annual market rent in DKK/sq m 1,400 DKK 1,150 DKK 1,000 DKK ο Viborg Yield in % 5.00% 5.75% 7.00% ο Annual market rent in DKK/sq m 1,125 DKK 1,000 DKK 850 DKK ο Herning Yield in % 5.00% 5.75% 7.00% ο Annual market rent in DKK/sq m 1,200 DKK 1,050 DKK 900 DKK ο Aalborg Yield in % 4.50% 5.00% 5.50% ο Annual market rent in DKK/sq m 1,350 DKK 1,150 DKK 950 DKK ο HjΓΈrring Yield in % 5.25% 6.25% 7.00% ο Annual market rent in DKK/sq m 1,150 DKK 950 DKK 775 DKK ο Frederikshavn Yield in % 5.75% 6.75% 7.50% ο Annual market rent in DKK/sq m 1,050 DKK 850 DKK 650 DKK ο Source: EDC International Poul Erik Bech, estimates as of Q1 2023
Residential rental
fully developed properties
Yield in %, annual rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Source: EDC International Poul Erik Bech, estimates as of Q1 2023
Area Prime Secondary Tertiary Trend Central Copenhagen Yield in % 3.50% 3.75% 4.25% ο Annual rent in DKK/sq m 1,800 DKK 1,650 DKK 1,500 DKK ο Γsterbro, Frederiksberg and Gentofte Yield in % 3.50% 4.00% 4.25% ο Annual rent in DKK/sq m 1,750 DKK 1,650 DKK 1,550 DKK ο Remaining Copenhagen Yield in % 4.00% 4.25% 4.75% ο Annual rent in DKK/sq m 1,700 DKK 1,600 DKK 1,500 DKK ο Western suburbs Yield in % 4.50% 5.00% 6.00% ο Annual rent in DKK/sq m 1,600 DKK 1,525 DKK 1,225 DKK ο Northern suburbs Yield in % 4.00% 4.50% 5.50% ο Annual rent in DKK/sq m 1,500 DKK 1,450 DKK 1,225 DKK ο North Zealand Yield in % 4.50% 5.00% 6.00% ο Annual rent in DKK/sq m 1,500 DKK 1,350 DKK 1,250 DKK ο East Zealand Yield in % 4.25% 5.25% 7.00% ο Annual rent in DKK/sq m 1,600 DKK 1,300 DKK 1,000 DKK ο West Zealand Yield in % 5.50% 6.50% 7.25% ο Annual rent in DKK/sq m 1,150 DKK 900 DKK 750 DKK ο South Zealand Yield in % 5.25% 6.25% 7.75% ο Annual rent in DKK/sq m 1,200 DKK 900 DKK 700 DKK ο Odense Yield in % 4.75% 5.00% 5.75% ο Annual rent in DKK/sq m 925 DKK 875 DKK 800 DKK ο Other Funen Yield in % 5.50% 6.25% 7.50% ο Annual rent in DKK/sq m 825 DKK 725 DKK 600 DKK ο Vejle Yield in % 5.25% 6.00% 6.50% ο Annual rent in DKK/sq m 1,125 DKK 1,025 DKK 800 DKK ο Kolding Yield in % 5.50% 6.00% 7.00% ο Annual rent in DKK/sq m 1,175 DKK 1.000 DKK 850 DKK ο Fredericia Yield in % 5.75% 6.25% 7.25% ο Annual rent in DKK/sq m 1,125 DKK 975 DKK 800 DKK ο Esbjerg Yield in % 5.25% 6.25% 7.25% ο Annual rent in DKK/sq m 1,050 DKK 875 DKK 700 DKK ο Other South Jutland Yield in % 6.00% 7.00% 8.00% ο Annual rent in DKK/sq m 1,000 DKK 850 DKK 700 DKK ο Aarhus Yield in % 4.00% 4.75% 5.25% ο Annual rent in DKK/sq m 1,575 DKK 1,350 DKK 1,200 DKK ο Silkeborg Yield in % 4.75% 5.75% 7.25% ο Annual rent in DKK/sq m 1,350 DKK 900 DKK 650 DKK ο Viborg Yield in % 5.50% 6.50% 8.00% ο Annual rent in DKK/sq m 1,100 DKK 850 DKK 650 DKK ο Herning Yield in % 5.25% 6.25% 7.25% ο Annual rent in DKK/sq m 1,150 DKK 925 DKK 750 DKK ο Aalborg Yield in % 4.50% 5.25% 6.00% ο Annual rent in DKK/sq m 1,150 DKK 1,100 DKK 900 DKK ο HjΓΈrring Yield in % 5.75% 6.25% 7.50% ο Annual rent in DKK/sq m 900 DKK 800 DKK 700 DKK ο Frederikshavn Yield in % 6.25% 7.00% 8.00% ο Annual rent in DKK/sq m 850 DKK 750 DKK 625 DKK ο
Residential rental older properties
Yield in percent and trends for the next 12 months
Source: EDC International Poul Erik Bech, estimates as of Q1 2023
Area Prime Secondary Tertiary Trend Central Copenhagen Yield in % 1.25% 2.00% 2.75% ο Γsterbro, Frederiksberg and Gentofte Yield in % 1.50% 2.00% 2.75% ο Remaining Copenhagen Yield in % 2.50% 3.00% 3.50% ο Western suburbs Yield in % 4.00% 4.75% 5.50% ο Northern suburbs Yield in % 3.75% 4.25% 5.25% ο North Zealand Yield in % 4.00% 4.75% 5.75% ο East Zealand Yield in % 4.00% 5.00% 6.50% ο West Zealand Yield in % 5.00% 6.25% 7.00% ο South Zealand Yield in % 5.00% 6.00% 7.25% ο Odense Yield in % 3.50% 4.50% 5.25% ο Other Funen Yield in % 5.25% 5.50% 7.00% ο Vejle Yield in % 5.00% 5.50% 6.00% ο Kolding Yield in % 5.00% 5.50% 6.50% ο Fredericia Yield in % 5.50% 6.00% 7.00% ο Esbjerg Yield in % 5.00% 5.50% 6.50% ο Other South Jutland Yield in % 5.25% 6.25% 7.25% ο Aarhus Yield in % 2.00% 3.25% 5.00% ο Silkeborg Yield in % 4.50% 5.25% 7.00% ο Viborg Yield in % 5.25% 6.00% 7.75% ο Herning Yield in % 5.00% 6.00% 7.00% ο Aalborg Yield in % 3.25% 4.50% 5.75% ο HjΓΈrring Yield in % 5.25% 6.00% 7.00% ο Frederikshavn Yield in % 5.75% 6.75% 7.50% ο
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Area Prime Secondary Tertiary Trend Central Copenhagen Yield in % 3.50% 4.00% 5.00% ο Annual market rent in DKK/sq m 2,650 DKK 1,800 DKK 1,450 DKK ο Γsterbro, Frederiksberg and Gentofte Yield in % 3.75% 4.50% 5.50% ο Annual market rent in DKK/sq m 2,350 DKK 1,600 DKK 1,350 DKK ο Harbour areas Yield in % 3.50% 4.25% 5.50% ο Annual market rent in DKK/sq m 2,700 DKK 1,850 DKK 1,600 DKK ο Γrestad Yield in % 4.25% 4.75% 6.00% ο Annual market rent in DKK/sq m 2,050 DKK 1,600 DKK 1,450 DKK ο Remaining Copenhagen Yield in % 4.25% 5.25% 6.25% ο Annual market rent in DKK/sq m 1,900 DKK 1,350 DKK 1,000 DKK ο Western suburbs Yield in % 4.75% 6.50% 9.00% ο Annual market rent in DKK/sq m 1,400 DKK 850 DKK 600 DKK ο Northern suburbs Yield in % 4.50% 5.75% 8.75% ο Annual market rent in DKK/sq m 1,625 DKK 1,350 DKK 750 DKK ο North Zealand Yield in % 5.00% 6.00% 8.50% ο Annual market rent in DKK/sq m 1,425 DKK 1,025 DKK 700 DKK ο East Zealand Yield in % 5.50% 7.00% 10.25% ο Annual market rent in DKK/sq m 1,400 DKK 900 DKK 450 DKK ο West Zealand Yield in % 6.00% 8.00% 10.50% ο Annual market rent in DKK/sq m 1,150 DKK 700 DKK 350 DKK ο South Zealand Yield in % 7.00% 8.25% 10.75% ο Annual market rent in DKK/sq m 1,000 DKK 700 DKK 350 DKK ο Odense Yield in % 5.50% 6.50% 8.50% ο Annual market rent in DKK/sq m 1,550 DKK 1,000 DKK 650 DKK ο Other Funen Yield in % 6.50% 8.00% 9.50% ο Annual market rent in DKK/sq m 1,200 DKK 800 DKK 450 DKK ο Vejle Yield in % 6.00% 7.50% 9.50% ο Annual market rent in DKK/sq m 1,450 DKK 950 DKK 550 DKK ο Kolding Yield in % 6.50% 7.75% 9.75% ο Annual market rent in DKK/sq m 1,400 DKK 850 DKK 500 DKK ο Fredericia Yield in % 6.50% 8.25% 10.00% ο Annual market rent in DKK/sq m 1,350 DKK 900 DKK 500 DKK ο Esbjerg Yield in % 7.00% 8.50% 10.00% ο Annual market rent in DKK/sq m 1,400 DKK 800 DKK 450 DKK ο Other South Jutland Yield in % 7.50% 9.00% 11.75% ο Annual market rent in DKK/sq m 1,150 DKK 700 DKK 450 DKK ο Aarhus Yield in % 4.50% 5.50% 8.25% ο Annual market rent in DKK/sq m 1,800 DKK 1,400 DKK 650 DKK ο Silkeborg Yield in % 6.25% 7.25% 9.25% ο Annual market rent in DKK/sq m 1,250 DKK 700 DKK 450 DKK ο Viborg Yield in % 6.75% 7.50% 9.25% ο Annual market rent in DKK/sq m 975 DKK 600 DKK 400 DKK ο Herning Yield in % 6.50% 7.50% 9.25% ο Annual market rent in DKK/sq m 1.150 DKK 700 DKK 425 DKK ο Aalborg Yield in % 5.75% 6.50% 7.50% ο Annual market rent in DKK/sq m 1,300 DKK 900 DKK 600 DKK ο HjΓΈrring Yield in % 7.00% 8.00% 11.00% ο Annual market rent in DKK/sq m 1,000 DKK 650 DKK 400 DKK ο Frederikshavn Yield in % 7.50% 8.50% 11.00% ο Annual market rent in DKK/sq m 850 DKK 500 DKK 350 DKK ο Source: EDC International Poul Erik Bech, estimates as of Q1 2023
Office
Available office space as a percentage of building stock
0% 4% 2% 8% 10% 14% 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 21 2 0 20 12% 6% 2 0 23 2 0 22 Capital Region of Denmark Region Zealand Region of Southern Denmark Central Denmark Region North Denmark Region Denmark, total
Source: Ejendomstorvet-ED Statistikken, estimates as of 1 January 2023 availability
FOR SALE
Office
FOR RENT Case no. 27801542, 2600 Glostrup FOR SALE Case no. 40302356, 4100 Ringsted
Case no.
51202579, 5610 Assens
FOR
RENT Case no. 81200258, 8000 Aarhus
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Source: EDC International Poul Erik Bech, estimates as of Q1 2023 Area Prime Secondary Tertiary Trend StrΓΈget Yield in % 3.50% 4.25% 4.75% ο Annual market rent in DKK/sq m 19,000 DKK 10,500 DKK 6,000 DKK ο Central Copenhagen Yield in % 5.00% 5.75% 6.25% ο Annual market rent in DKK/sq m 4,750 DKK 2,500 DKK 1,750 DKK ο Γsterbro, Frederiksberg and Gentofte Yield in % 5.25% 6.00% 7.00% ο Annual market rent in DKK/sq m 4,000 DKK 2,250 DKK 1,400 DKK ο Harbour areas Yield in % 5.00% 5.75% 6.25% ο Annual market rent in DKK/sq m 2,750 DKK 1,800 DKK 1,500 DKK ο Γrestad Yield in % 5.50% 6.25% 7.00% ο Annual market rent in DKK/sq m 2,400 DKK 1,750 DKK 1,500 DKK ο Remaining Copenhagen Yield in % 5.50% 6.25% 7.50% ο Annual market rent in DKK/sq m 3,000 DKK 1,750 DKK 1,000 DKK ο Western suburbs Yield in % 5.50% 6.75% 8.75% ο Annual market rent in DKK/sq m 2,500 DKK 1,500 DKK 800 DKK ο Northern suburbs Yield in % 5.25% 6.25% 7.50% ο Annual market rent in DKK/sq m 4,500 DKK 2,000 DKK 1,000 DKK ο North Zealand Yield in % 5.50% 6.75% 8.00% ο Annual market rent in DKK/sq m 3,500 DKK 1,750 DKK 750 DKK ο East Zealand Yield in % 5.50% 7.00% 8.50% ο Annual market rent in DKK/sq m 3,000 DKK 1,400 DKK 1,000 DKK ο West Zealand Yield in % 6.00% 7.50% 9.50% ο Annual market rent in DKK/sq m 1,750 DKK 950 DKK 500 DKK ο South Zealand Yield in % 6.50% 7.75% 9.75% ο Annual market rent in DKK/sq m 1.600 DKK 900 DKK 500 DKK ο Odense Yield in % 6.00% 7.00% 8.25% ο Annual market rent in DKK/sq m 5,500 DKK 2,500 DKK 650 DKK ο Other Funen Yield in % 6.50% 7.50% 10.25% ο Annual market rent in DKK/sq m 2,300 DKK 1,250 DKK 500 DKK ο Vejle Yield in % 6.25% 7.25% 9.25% ο Annual market rent in DKK/sq m 3,000 DKK 1,500 DKK 750 DKK ο Kolding Yield in % 6.50% 7.50% 9.25% ο Annual market rent in DKK/sq m 2,050 DKK 1,200 DKK 600 DKK ο Fredericia Yield in % 7.25% 8.25% 10.00% ο Annual market rent in DKK/sq m 1,650 DKK 1.000 DKK 550 DKK ο Esbjerg Yield in % 7.25% 8.75% 10.25% ο Annual market rent in DKK/sq m 2,400 DKK 1,000 DKK 550 DKK ο Other South Jutland Yield in % 7.50% 9.00% 10.50% ο Annual market rent in DKK/sq m 1,800 DKK 1,150 DKK 400 DKK ο Aarhus Yield in % 4.50% 5.50% 7.25% ο Annual market rent in DKK/sq m 6,000 DKK 2,500 DKK 900 DKK ο Silkeborg Yield in % 6.25% 7.25% 8.75% ο Annual market rent in DKK/sq m 2,400 DKK 1,050 DKK 550 DKK ο Viborg Yield in % 6.75% 7.75% 10.25% ο Annual market rent in DKK/sq m 2,500 DKK 1,050 DKK 500 DKK ο Herning Yield in % 7.00% 8.00% 10.00% ο Annual market rent in DKK/sq m 1,750 DKK 900 DKK 500 DKK ο Aalborg Yield in % 5.25% 6.50% 8.25% ο Annual market rent in DKK/sq m 4,000 DKK 1,800 DKK 900 DKK ο HjΓΈrring Yield in % 7.00% 8.00% 10.00% ο Annual market rent in DKK/sq m 1,400 DKK 750 DKK 400 DKK ο Frederikshavn Yield in % 7.50% 8.50% 10.50% ο Annual market rent in DKK/sq m 1,200 DKK 700 DKK 375 DKK ο
Retail
Available retail space as a percentage of building stock
Source: Ejendomstorvet-ED Statistikken, estimates as of 1 January 2023
Retail 0% 2% 3% 5% 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 21 2 0 20 4% 1% 2 0 23 2 0 22 Capital Region of Denmark Region Zealand Region of Southern Denmark Central Denmark Region North Denmark Region Denmark, total
FOR SALE Case no. 18101139, 1879 Frederiksberg C
FOR SALE Case no. 34202824, 3200 Helsinge
FOR SALE Case no. 47401117, 4400 Kalundborg
FOR RENT Case no. 81100238, 8000 Aarhus
Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months
Source: EDC International Poul Erik Bech, estimates as of Q1 2023
Area Prime Secondary Tertiary Trend Remaining Copenhagen Yield in % 4.50% 5.25% 6.25% ο Annual market rent in DKK/sq m 1,000 DKK 800 DKK 600 DKK ο Western suburbs Yield in % 5.25% 7.00% 9.50% ο Annual market rent in DKK/sq m 700 DKK 550 DKK 400 DKK ο Northern suburbs Yield in % 5.75% 6.75% 8.00% ο Annual market rent in DKK/sq m 800 DKK 550 DKK 400 DKK ο North Zealand Yield in % 6.00% 7.25% 8.50% ο Annual market rent in DKK/sq m 750 DKK 525 DKK 375 DKK ο East Zealand Yield in % 4.75% 6.00% 9.00% ο Annual market rent in DKK/sq m 750 DKK 500 DKK 300 DKK ο West Zealand Yield in % 6.25% 8.50% 10.50% ο Annual market rent in DKK/sq m 550 DKK 350 DKK 200 DKK ο South Zealand Yield in % 7.00% 8.75% 10.75% ο Annual market rent in DKK/sq m 475 DKK 300 DKK 200 DKK ο Odense Yield in % 5.50% 6.75% 8.50% ο Annual market rent in DKK/sq m 550 DKK 400 DKK 250 DKK ο Other Funen Yield in % 5.75% 8.25% 10.00% ο Annual market rent in DKK/sq m 500 DKK 350 DKK 200 DKK ο Vejle Yield in % 5.50% 7.25% 9.50% ο Annual market rent in DKK/sq m 575 DKK 375 DKK 250 DKK ο Kolding Yield in % 5.50% 7.50% 9.75% ο Annual market rent in DKK/sq m 575 DKK 375 DKK 250 DKK ο Fredericia Yield in % 5.50% 7.00% 8.50% ο Annual market rent in DKK/sq m 625 DKK 400 DKK 250 DKK ο Esbjerg Yield in % 7.00% 8.50% 10.00% ο Annual market rent in DKK/sq m 425 DKK 325 DKK 225 DKK ο Other South Jutland Yield in % 6.50% 9.25% 11.25% ο Annual market rent in DKK/sq m 500 DKK 275 DKK 200 DKK ο Aarhus Yield in % 5.50% 7.00% 9.25% ο Annual market rent in DKK/sq m 575 DKK 425 DKK 300 DKK ο Silkeborg Yield in % 6.75% 8.50% 10.50% ο Annual market rent in DKK/sq m 450 DKK 350 DKK 200 DKK ο Viborg Yield in % 7.00% 8.50% 10.50% ο Annual market rent in DKK/sq m 450 DKK 350 DKK 250 DKK ο Herning Yield in % 7.00% 8.50% 10.50% ο Annual market rent in DKK/sq m 400 DKK 300 DKK 200 DKK ο Aalborg Yield in % 5.75% 7.00% 9.00% ο Annual market rent in DKK/sq m 525 DKK 375 DKK 250 DKK ο HjΓΈrring Yield in % 7.00% 9.00% 11.00% ο Annual market rent in DKK/sq m 400 DKK 300 DKK 200 DKK ο Frederikshavn Yield in % 7.50% 9.50% 12.00% ο Annual market rent in DKK/sq m 400 DKK 275 DKK 150 DKK ο
Industrial
Available industrial space as a percentage of building stock
0% 2% 1% 4% 5% 8% 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 21 2 0 20 6% 3% 7% 2 0 23 2 0 22 Capital Region of Denmark Region Zealand Region of Southern Denmark Central Denmark Region North Denmark Region Denmark, total
Source: Ejendomstorvet-ED Statistikken, estimates as of 1 January 2023 Industrial availability
FOR SALE Case no. 64100754, 6300 Graasten
FOR SALE Case no. 91206055, 7500 Holstebro
FOR SALE Case no. 91400358, 9900 Frederikshavn
FOR SALE Case no. 181014452, 4000 Roskilde
Definitions
Location and condition
Yield and rent levels estimates are based on primary, secondary and tertiary categories, where primary is the best and tertiary is the worst. Various variables for each property type have been taken into consideration with regards to determine the facility classes, such as: size, floor plan structure, year of construction, lifts, climate control, cabling infrastructure, staff facilities, customer facilities, parking facilities, building energy rating, ceiling height, general accessibility, general condition of the property, etc.
Primary: A property with prime location and class A facilities has the best possible location in an area, the highest standard when it comes to facilities, is modern and ready to move into. This type of property will typically be sold at the lowest yield in the area, have the highest market rent and have a short reletting process.
Secondary: Average in terms of location and condition. Yield and rent levels also reflect the average levels for the area. The re-rental options are market compliant and reflect the general market conditions.
Tertiary: Poor location for the area, low standard, and outdated. This type of property is expected to be able to be sold at a relatively high yield level, and the rent level is low for the defined area. Similarly, vacancy rates can be expected to be higher than the market average.
Yield
All yields are initial net yields and are defined as the annualized rent generated by the property after the deduction of estimated annual irrecoverable property outgoings, expressed as a percentage of the property valuation (property valuation is adjusted for the value of rental deposits and prepaid rent). For comparison purposes, it is assumed that all properties are fully let at market-conform conditions.
Market Rent
All rents are headline rents, in other words, the contracted gross rent receivable, which becomes payable after any tenant incentives have expired. Market rent estimates are expressed in DKK/sq m/year. It is assumed that all properties are let at market-conform conditions.
Residential rental properties
1) Newer residential rental properties are properties that have been occupied after 31.12.1991 and thus covered by the rules on free/market rent according to the Danish Residential Rent Regulation Act section 54 (1, 1).
2) Older residential rental properties are properties that have been occupied before 31.12.1991 and are regulated in accordance with the provisions of the Danish Residential Rent Regulation Act on cost-determined rent.
3) Fully developed older residential rental properties are older home rental properties without further potential for rent increases through modernization pursuant to section 19 (2) of the Danish Residential Rent Regulation Act.
Data for available commercial premises
The source of available commercial premises is the latest available supply statistics from Ejendomstorvet. Further information about these statistics can be found at ejendomstorvet.dk/statistik/udbudsstatistik.
Trends
All trends reflect our expectations to the level in 12 months time.
ο The figure is expected to increase
ο The figure is expected to remain unchanged
ο The figure is expected to decrease
Note on estimates
The valuation of a property depends on many specific factors, including conditions of the lease, the tenant, and the property condition. The estimates cannot be used uncritically in the valuation of one specific property but can serve as input related to the valuation. Reproduction or citation only with acknowledgment of source. While every effort has been made to ensure that the information provided is accurate, EDC International Poul Erik accepts no liability for errors.
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