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NewsLetter February 2010
25-02-2010: Latest trends and market indicators, Danish commercial property market
The year 2009 was one of the harshest years to hit the Danish commercial property industry for a long time. Office and retail vacancies were rising, rents were stagnant or declining, and transaction activity in the investment property market plummeted. According to the Sadolin & Albæk commercial property price index, prices dropped by more than 8% in Greater Copenhagen.
But the crisis is not over yet, and the risk of a renewed downturn, a so-called ‘double dip’, still exists. It is, however, reassuring to note that the demand for well-located and attractive investment properties is mounting, and in the second half of 2009 several important investment transactions were effected. Although risk tolerance is low, the index-linked cash flow typically offered by sound and well-located investment properties is highly attractive relative to the interest rate level.
The market for properties of more secondary quality and location remains very weak, however, and even though we record a certain level of demand from more opportunistic investors, such properties will continue to see a weak price trend longer term.
In our NewsLetter February 2010 we also describe the latest trends in the commercial property market, including the development in commercial property prices in Greater Copenhagen.
This NewsLetter includes a survey of property market indicators for rents, yields and vacancy rates in office, retail and industrial/logistics property in Greater Copenhagen, Aarhus and the so-called Triangle Region (Fredericia, Vejle and Kolding). This survey may also be downloaded separately.
Reproduction or citation only with express acknowledgement of source.
NewsLetter February 2010:
 NewsLetter February 2010
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