Market Insight Q4 2022 UK

Contents

EDC Poul Erik Bech

Zealand/Funen

Copenhagen +45 5858 8378

Herlev +45 5858 8376

Taastrup +45 5858 8472

Hillerød +45 5858 8377 Roskilde +45 5858 8395

Køge +45 5858 8379

Næstved +45 5858 8380

Slagelse +45 5858 8396 Odense +45 5858 8397

Jutland Kolding +45 5858 8399

Aabenraa +45 5858 8425

Sønderborg +45 5858 8422

Esbjerg +45 5858 8398

Vejle +45 5858 8423

Aarhus +45 5858 8670

Silkeborg +45 5858 8427

Herning +45 5858 8567

Viborg +45 5858 8424

Aalborg +45 5858 8449

Vendsyssel +45 5858 8487

International +45 5858 8563 Research +45 5858 8564

Agriculture +45 5858 8574

Project +45 5858 8487

Capital Markets +45 5858 8572

Get local knowledge about your city with CityFact: Which city or cities are you investing in?

Supply chains in transport, industry, and logistics under pressure

Get help finding the right locations and achieve the optimal contract

Byhaven in Silkeborg offers 98 quality rental apartments

Høje Taastrup C: A new city within the city with a quarter of a million square meters construction

Clever is building Denmark’s largest public ultra-fast charging station at a perfect location

For sale / rental

Danish People’s Aid and EDC Poul Erik Bech Foundation secure School Start Aid for all applicants

Residential rental projects

W. P. Carey announces €64 million follow-on investment with Coop Danmark

Half of the lighthouse project Green Hills in Solrød has been let: ”We have never experienced such great interest”

Turn the Market Insight around to read: Market Update Q3, 2022

Dear reader

This edition of Market Insight takes you through current themes within the Danish and international commercial property market. The magazine is published in Danish and English, together with the latest Market Update report with the latest market data, which you will find in the middle of our magazine.

At EDC Poul Erik Bech, we have launched a new analysis product called CityFact, which provides insight into specific market areas across the country. The analysis product contains relevant market figures and trends within the real estate segments residential, office, retail, warehouse, logistics, production, and project development. CityFact combines publicly available data with our own data and qualitative knowledge from our 19 local business centers. The content is thus relevant for many players in the real estate industry. You can read more about this on the following pages.

We have also developed a new digital service for all property owners called Send-my-buyer. As a property owner, you may have considered selling your property. You may want to wait and see or get a sense of the interest in your property before putting it up for sale. With Send-my-buyer, it is easy to follow the demand for your property.

In this edition, you can read about the supply chains in transport, industry, and logistics, which are under pressure in the aftermath of Corona. We have discussed this with the branch director of DI Transport, Karsten Lauritzen. Many companies have had challenges delivering goods to their customers. On that basis, many companies have realized that they need to stock more goods on the shelves, as they can no longer take goods delivery for granted. It requires more warehouse space, but with a historically low vacancy rate, space is hard to come by. Therefore, we will have to make room for our business community to continue the progress in Denmark.

In this edition of Market Insight, we additionally give you an overview of some of the exciting projects we are involved in. This includes, among other things, the story about Clever, who is building Denmark’s largest public ultra-fast charging station at a perfect location at Aabenraa, and the article about the sustainable district, Høje Taastrup C, which will consist of a quarter of a million square meters construction. You can also read about the lighthouse project Green Hills in Solrød, which has been met with overwhelming demand.

And as always – if you need advice on commercial properties, you are more than welcome to contact us.

Happy reading!

Yours sincerely Poul Erik Bech

The EDC Poul Erik Bech Foundation is the primary owner of EDC Poul Erik Bech and receives a share of the business profits every year. The funds are distributed mainly to associations that make a difference for vulnerable children. Since the foundation was set up in 2015, it has received a total of DKK 50 million for distribution. Read more at www.poulerikbechfonden.dk

Which city or cities are you investing in?

At EDC Poul Erik Bech, we have developed a new analysis product called CityFact, which takes the pulse of commercial properties in specific market areas across the country. The online product has been created in collaboration with our 19 local business centers so that you, as an actor in the real estate industry, can gain an in-depth insight into the factors that drive investments in your particular city and market area.

CityFact combines relevant, publicly available data, data from EDC Poul Erik Bech, and qualitative knowledge from our 19 local business centers. The strength is thus the total knowledge the reader obtains at once concerning a local market area, which is thus collected in a visual, easy-to-read, and understandable manner.

CityFact covers the broad property market with relevant figures and trends for specific municipalities and cities in Denmark. The content is thus relevant for many actors in the property industry, including investors, project developers, landlords, tenants, and employees in the public and financial sectors. Joseph Alberti, Head of Research at EDC Poul Erik Bech, says,

for

0,30% sammenlignet

før,mens priserne for ejerlejligheder er faldet med -5,76% sammenlignet med kvartalet før. På landsplan er priserne hhv faldet med -0,38% for parcel og

”We are now introducing our new analysis product, CityFact, which we have developed with relevant real estate data for our customers and business partners. It is the first product on the market that combines all relevant market conditions in one comprehensive analysis product, which means that the players in the real estate industry can easily and efficiently form a thorough overview of local market conditions. We are constantly experiencing an increased demand for value-creating data that can illuminate and sub stantiate local market trends, which has contributed to our development of CityFact, an analysis product that gathers a lot of diverse and essential market data in one report.”

”Our analysis product contains data on demographic movements, including population development, age distribution, moving activity, and trends within the workforce for specific

THE IMPACT OF THE PRIVATE HOUSING MARKET

impact of the private housing market is also taken into account in CityFact concerning the market for residential rental properties. Especially with the current macroeconomic situation, the choice for private individuals to either own or rent will be even more relevant. Most recently, the significant increases in interest rates have made it more challenging to finance home purchases, which has led to more people renting rather than owning.

market areas with data down to city level. As Denmark’s largest and only nationwide brokerage with 75 housing stores, 19 business centers, and more than 650 employees, we have the opportunity to provide our customers and business partners with current market data for all our market areas. CityFact will therefore be relevant to many people connected to the property industry – both private and public players.”

All real estate segments

The analysis product contains current market data for the following property segments: residential, office, retail, warehouse, logistics, production, and project development, as well as information on the vacancy, market rent, return requirements, and development areas with construction activity –both historical and planned construction.

”We have compiled CityFact in close cooperation with our many local brokers, who have their finger on the pulse concerning the local market development to ensure as specific, relevant, and detailed knowledge as possible. All figures are supported with comments and explanations so that the data appears clear, visually easy to read, and supplemented with insight into local market conditions. In addition to showing the current status, the data is supported with in-depth descriptions and figures related to the historical development, so you get access to in-depth property data with many valuable key figures,” says Joseph Alberti and continues,

”CityFact also provides an overview of the area’s most significant devel opment projects and describes what particularly applies to these. This is supported by current figures for construction, both with historical supply and current projects in the pipeline. The analysis product looks at trends and movements that apply to your city and area so that you can base your decisions on a wellfounded basis.”

på 9,9%.

kommunen,svarende til en stigningpå 6,6%.

AREAS OF DEVELOPMENT

CityFact shows which development areas there are in each city, both with name and geographical location on the map.

AALBORG KOMMUNE

mod 2032 forventesdet, at der kommer 14 513 flere indbyggere

A L D E R S F O R D E L T B E F O L K N N G S V Æ K S T Frem mod 2032 forventesdet, at antallet af 0-19 årige vil stige med 4.067 personer, svarende til en stigning på 9,1%, antallet af 20 29 årige vil falde med -1.512 personer, svarende til et faldpå -3,3%, antallet af 30 49 årige vil stige med 5.569 personer, svarende til en stigning på 10,7%, antallet af 50 69 årige vil stige med 1.188 personer, svarendetil en stigning på 2,4%, og antallet af 70+-årige vil stige med 5.205 personer, svarende til en stigningpå 17,6%. Dermed forventesdet, at den høje vækst blandt unge den studieaktive alder, vil føre til høj vækst blandtmidaldrende og børn de kommende år

The demographic movements are decisive for the property market and the demand for properties – both from tenants, owners and investors. CityFact illuminates the development in the population and the business world, including jobs, workplaces, and industries for the city in question. Thus, the analysis provides a thorough overview of underlying trends that can help explain the supply and demand for relevant property types.

POPULATION GROWTH

The demographic growth is shown graphically in several different ways. Among other things, the population growth is compared to other cities. In addition, both the historical and expectations for future age-distributed population growth are shown. In this way, investors can prepare for future trends.

Get access to the current status of vacancy, rent levels, and yield requirements

With CityFact, you get the current status of the real estate market. If, in addition to CityFact, you need to substantiate your investments with in-depth analy ses further, contact our research department. If you want, e.g., in-depth information about transaction volume, demographic trends, support for rent levels, or other things, then EDC Poul Erik Bech Research is ready to assist you.

CityFact

We offer area-specific analyses for the entire country that can be adapted to your specific needs. In addition, we provide in-depth analyses of population develop ment, housing supply, transaction volume, etc., which can help you make the right decisions on a well-founded knowledge base. Contact us for a closer dialogue about your wishes and needs to support your investments.

seminar

2023?

Join us when we take the temperature of the business property market in 2023 at our morning seminar.

Tuesday, November 29, 2022, from 9-11.30 a.m. We provide coffee and croissants from 8.15.

Planetarium, Gl. Kongevej 10, 1610 Copenhagen V

At the seminar, we look at the fortune-telling ball and put into perspective what the surveyed tenants and investors in our 8th outlook survey expect from the market in the coming year. What importance does the current market have for the real estate market in the future?

The program for the day:

• Welcome w. Poul Erik Bech

• Status of the Danish real estate market w. Joseph Alberti, Head of Research, EDC Poul Erik Bech

• Main conclusions from the study 2023 w. Joseph Alberti, Head of Research, EDC Poul Erik Bech

• Status of the Nordic and European market w. Thomas Persson Head of Capital Markets Nordics, JLL (Jones Lang Lasalle)

• Expectations for the financial markets, including lending in 2023 w. Bjarne Jørgensen Vice President and Mark Gibson Chief Analyst, Realkredit Danmark

• Challenges and opportunities as an investor in 2023 w. Mikael Arne Fogemann, Executive Director, PFA

• Which industries/companies can become winners and losers on top of the high inflation w. Tore Stramer, Chief economist, Dansk Erhverv

• Collection of expectations for 2023 w. Poul Erik Bech

”We will simply have to make room for our business segment to continue the progress in Denmark”

There have been major movements in the transport sector and the real estate market in the aftermath of corona with the closure of the port in Shanghai, Ever Given, which was stuck in Suez, and the war in Ukraine. All in all, many companies and industries have had difficulty delivering goods to customers. The companies at home have realized that we can no longer take the transport and delivery of goods for granted. Many companies will have to carry more products on the shelves, which requires more warehouse space, which is difficult to find, as the vacancy rate is at a historic low.

On average, Danes spend one hour in transport per day. Therefore, transport and logistics are essential focus areas that must function optimally to get the wheels turning in society. Karsten Lauritzen, branch director of DI Transport, says,

“Sometimes, we forget that waste, building materials, citizens, and all goods have to be transported every single day. It sums up to many hours. Everything that can be done at a national and local level strengthens the transport sector and therefore, greatly strengthens the competitiveness of Danish companies. With the aftermath of corona, the war in Ukraine, etc., the Danes and the Danish companies have realized that we can no longer take the transport and delivery of goods for granted. It is no longer something that ‘just’ happens automatically and that you can count on and expect to work.”

“The new reality means that a large piece of logistical work needs to be done. We hear greatly from our members in DI – e.g., in our company panel, that many companies have been affected and are still affected by their security of supply. This means that many more people start to focus on ‘just in case’ and and do what they can to always have sufficient goods on the shelves – and not as in the past when there was a trend of ‘just in time” to avoid a surplus of items. Thus, there has been a shift in the approach companies within the transport and logistics area, which ultimately also helps to influence the demand for ware house and logistics properties.”

A survey by The Confederation of Danish Enterprises from September 2022 shows, for example, that the proportion of online stores with delivery problems is decreasing. However, the international supply chaos still affects 2 out of 5 online stores in Denmark and may have consequences on Black Friday and Christmas sales.

Lack of properties and record low vacancy rates

In large parts of Denmark, there are not a sufficient number of warehouse, logistics, and production properties, and the supply is also historically low, with only 1.3% vacancy nationwide. Mads Bjerrum Christensen, industrial manager at EDC Poul Erik Bech Aarhus, says,

“After corona, several companies wanted to secure more storage space because they have experienced pressure on the supply chains and delivery problems, as goods have been stuck abroad. Demand is very high with record low vacancies, which puts pressure on the market. Therefore, there are real opportunities for those investors who want to invest in the existing properties or build new industrial and logistics properties.”

This picture is not limited to Denmark only – on the contrary, it is the case throughout the Nordic region. This is one of the main conclusions in the just-published report ‘JLL Nordic Outlook – Autumn 2022’, which focuses on the industrial segment and investments in the property industry. The report has been prepared by one of the world’s largest real estate companies, Jones Lang LaSalle (JLL), in collab oration with EDC Poul Erik Bech. Joseph Alberti, Head of Research, EDC Poul Erik Bech, says,

“As it can be seen from the Nordic report, logistics and warehouse properties have seen an increase in the total share of transaction volume. In 2019, logistics properties were traded for DKK 3.6 billion, which increased to DKK 12.9 billion in 2021 and DKK 6.7 billion in the first half of 2022 alone. This means that the segment is growing, a clear trend that we expect to continue in 2022 and beyond. With a 4% return on prime properties in the logistics and warehouse segment, it remains an attractive investment in a Nordic and European context. With a record low vacancy rate, more and more investors will naturally consider building and investing in the segment.”

In a new report, Denmark’s largest commercial pension company, PFA, has calculated that their investment in logistics in Denmark and internationally has turned out to be an excellent business. PFA’s investments in logistics have yielded a return of 15.5%, corresponding to approx. DKK 2.5 billion since 2013. Therefore, PFA has announced another 85,000 m2 expansion of Taulov Dry Port in Fredericia, which must be ready at the beginning of 2024. 100,000 m2 has been built, and a total expansion of 100,000 m2 has previously been announced and is ready in 2023.

Must have items on the shelves

In Denmark, the demand for properties is most significant in the larger cities, and virtually everyone wants to be located close to the motorways. Still, due to the low supply, many have to search further away from their desired locations, postpone or altogether drop their plans.

Mads Bjerrum Christensen, head of industry at EDC Poul Erik Bech Aarhus, says, “All things being equal, it puts a damper on Denmark’s development, production, and new workplaces. Corona has also increased e-commerce, which has helped drive demand for logistics and warehouse properties in the past two years and is expected to continue to do so going forward. Increasingly, the fragility of supply chains is on the agenda, and companies are working to optimize production and delivery to secure goods on the shelves. All in all, it increases the demand for square meters.”

Karsten Lauritzen, branch director at DI Transport, says, “We hear from, for example, fashion companies that typically focus on a summer and winter collection, that there is a much greater focus on having goods in stock, as the customers otherwise disappear. Therefore, they risk burning out with more items and selling at sale prices, which can become a vicious circle for some companies. Many of our production and industrial companies also have a much greater focus on getting goods home on the shelves in time, and some are considering whether production should be moved home or closer to the respective markets.”

Use of business premises

According to Statistics Denmark, total transport by Danish trucks increased by 3% in the first quarter of 2022 com pared to the fourth quarter of 2021 and ended at DKK 3.9 billion tonne-km adjusted for seasonal fluctuations. The increase can be seen particularly in international transport, with a growth of 13%, whereas national transport has increased by 1%.

Karsten Lauritzen, branch director at DI Transport, says: “Companies are investing more in the area and taking precautions as they do not want to lose orders due to delivery problems. Many companies have to build up stocks to deliver, but this puts extra pressure on the entire supply chain. In recent years, we have transported more and more, and we expect that the volumes of goods will continue to increase, so it is difficult to see that the transport volumes will not continue to increase going forward.”

“ Sometimes, we forget that waste, building materials, citizens, and all goods have to be transported every single day

“ Karsten Lauritzen, branche director, DI Transport

Danish Industry continuously fights to ensure that the focus is placed on the issue of more business premises at a national and regional level. Karsten Lauritzen says, “We are in ongoing dialogue with several mayors and municipalities, who, of course, can see the problem in the lack of commercial space – especially in Greater Copenhagen, but also in larger cities. But there is more money in housing, and the population is growing, so the municipalities naturally have the greatest focus here.”

“Therefore, we also believe that it is an area that our politicians at national level must address. National solutions must simply be created through grants or legislation, which means that there must be a greater focus on business areas – ports, trains, airports, business areas, logistics, and industrial areas. We all have to make a living from these companies, which pay wages to the Danes and make money back home to Denmark. We will simply have to make room for our business community to continue the progress in Denmark.”

Need for comprehensive national plans

DI Transport works with several areas in the transport field where it is necessary to look at the challenges on a national level. Overall, according to Karsten Lauritzen, branch director at DI Transport, the focus must be on:

1. We lack some national strategies for development, e.g., within port capacity, rail freight, the supply of raw materials, infrastructure for the green transition, etc. It is crucial for our society that we both take better care of our infrastructure, that we use it more efficiently, and that we can expand where there is a clear need. For example, better protection of commercial ports with national interests has just been adopted, but we still lack a port strategy that points forward.

2. The capacity challenges in the transport industry must be solved. According to DI, it will continue for many years to come if nothing radical is done. For example, there is a significant shortage of lorry drivers, which is not a new problem, but with increased quantities to be transported and the high average age of the drivers at home, something must be done to solve the challenges. The problem will only get worse as the drivers retire.

3. The transport sector, like everyone else, must reduce its CO2 account significantly. It is a massive task for the profession. Here, better framework conditions are needed for the sector to kick-start development. Solutions must be found so that it becomes both a whip and a carrot. It is important that the money that comes into the treasury from the transport sector goes back to the industry in the form of green measures and subsidies to help the green transition. Unfortunately, things are going slowly with the green transformation of truck transport, i.e., due to customers’ lack of green willingness to pay and unfavorable framework conditions for green transport.

JLL and EDC Poul Erik Bech in Nordic Outlook

One of the world’s largest real estate companies, Jones Lang LaSalle (JLL), together with EDC Poul Erik Bech, has just published the report ‘JLL Nordic Outlook – Autumn 2022’ with a focus on the industrial segment and investments in the real estate industry in the Nordics.

Read the full report: www.edc.dk/erhverv/nordic-outlook

4. The transport industry is already under pressure. The EU has adopted a new road package that focuses on better working conditions, as road transport is particularly exposed to social dumping. Therefore, the EU has adopted a new law on social rights, which means that one in seven trucks will disappear from the roads in the coming years to live up to the new rules on pay, rest, and conditions. According to DI, it is, of course, essential to focus on and regulate the area. Therefore, the timing concerning regulating the transport industry is essential so that the focus is on development and the companies can remain competitive.

As a property owner, you may have considered selling your property. But maybe you want to wait and see or get a feel for the interest in your property before you put it up for sale. At EDC Poul Erik Bech, you get a unique insight into the interest in your property – without putting it up for sale.

Sign up for Send-my-buyer, and you will be notified directly when there are potential buyers in our database that match your property. Of course, it is confidential that you are considering the idea of selling, and you decide for yourself whether you want to proceed with a dialogue with a possible buyer.

Are there any buyers for my property? Read more and sign up on

www.sendminkøber.com

Get help finding the right locations and achieve the optimal contract

Abroad, it has for a long time been usual to get business brokers to help find the best possible premises and negotiate the best possible lease or purchase agreement. At home, tenant and buyer counseling is gaining ground, because the model offers many advantages to companies and investors. The real estate industry is much more than sales and letting because counseling business customers take up more and more space, experts from EDC Poul Erik Bech believe.

In the past, the broker most often acted on behalf of the seller or owner, but this is no longer the case.

There can be a lot of common sense in also using a commercial broker on the other side of the negotiation table – i.e., as an advisor and sparring partner when a company or investor wants to buy commercial property or rent premises. The model is widespread in several other countries, and it is also gaining ground here in these years.

“Abroad, business leases are typically renegotiated after a few years, and then it is natural there to have a business broker as an adviser. However, advising tenants and buyers is becoming more widespread here in Denmark. Companies are good at their core tasks, but many want to use experts for things they don’t deal with in their daily operations, e.g., finding locations and negoti ating contract terms. We deliver added value for our client, but most landlords also express great satisfaction that foreign companies have local advisers who know Danish practice – this also facilitates the process for landlords,” says Helle Nielsen Ziersen, Head of EDC International Poul Erik Bech.

She adds that another trend in the Danish market for business premises is that the brokers have the right connections. “Today, many transactions take place off-market – so we have to look beyond what is publicly offered. As a buyer or investor, it is a clear advantage to cooperate with a broker with good connections, etc., brokers who know who is in the market to sell but does not want to advertise.”

Helle Nielsen Ziersen has assisted American W.P. Carey with building a portfolio of over DKK 2 billion on several occasions of Danish properties within logistics and retail – most recently this summer, when W.P. Carey, with Helle Nielsen Ziersen as adviser, bought Coop stores for almost half a billion DKK, in which the grocery group continues as a tenant (Read more on pages 27-28, ed.).

Help with counseling

Among other recent assignments is an extensive project withNomura Research Institute, Ørestad

rental counseling for the popular flight search portal, Momondo, which is moving to Rådhuspladsen in Copenhagen, as well as search assignments and rental counseling for the Japanese IT group Nomura Research Institute, which has established a Danish office in Ørestad. EDC Interna tional receives many search tasks, e.g., via EDC Poul Erik Bech’s business partner JLL, one of the world’s largest business broker firms.

“When a company is considering renegotiation or has decided to move to a new location, there is much to think through. It is a time-consuming process, and as experts in commercial property, we can make the process easier for our customers,” Helle Nielsen Ziersen says.

“We often see that in many companies, a COO, finance director, HR director, etc. is responsible for finding new premises. But they are already busy people and have a lot to deal with daily. And quite naturally, they neither have market insight, search tools, networks, or connections, nor are they likely to be aware of the pitfalls of entering into commercial leases. Therefore, we can help as advisers. As far as the international company is concerned, there is a Danish and an international team involved, and here there are practices and customs in different countries that must be understood and considered.”

Brokers on both sides

But what about the ability? Can brokers, who are usually the seller’s or landlord’s husband, also sit on the other side of the table?

“We always investigate the competence (conflict of interest) to see if a conflict of interest arises. But it is not different from lawyers who cannot represent both parties in a negotiation or dispute. However, it is worth remembering that for a tenant or buyer, it provides a better balance to use an adviser with market insight and local knowledge, because the other party – landlord or seller – usually always has a broker attached,” Helle Nielsen Ziersen says.

Charging stations all over the country

In the Corporate Customers department, EDC Poul Erik Bech also helps an increasing number of customers with

many different types of tasks within premises search and tenant or buyer advice.

“For example, we help a dental company that is active in Greater Copenhagen and will gradually establish itself in the rest of Zealand and Jutland. Here, there are special requirements for furnishing and accessibility. We advise Mileway, which invests in logistics, in finding and buying properties. We have also helped BHS, which carries out transport and logistics within the pharmaceutical sector, with a total solution to a complex task of finding larger loca tions. We found a building site and an investor who wanted to build and rent out the building, and we found a buyer for the existing property,” director Thor Heltborg says.

EDC also entered into another complex agreement this summer with Denmark’s leading charging operator, Clever, which has ambitions for a nationwide network of small and large facilities, where electric vehicles can be charged.

“It is a big task. Clever would like to have 100-200 locations, some of which must be 3,000-6,000 m2 – significantly more than the old gas stations closing around the country. We have found a perfect location for them in Aabenraa (read more pages 18-19, edit). At the same time, it is a big plus if convenience stores are nearby so customers can have something to eat, drink or shop, while the car is refueled. Clever is owned by the joint-owned energy and fiber network group, Andel and the NRGi group, and therefore cannot run these other sales activities, but can help attract customers and generate revenue,” Thor Heltborg explains.

Martin Brasholt Mikkelsen, partner in EDC Poul Erik Bech Aalborg, is among Clever’s local eyes and ears in North Jutland.

“As a nationwide brokerage chain, we are everywhere in our local area, not just in Aalborg city center. A company like Clever needs to establish itself in many places, both with extensive ultra-fast charging stations and with some smaller facilities. The charging stations should preferably be located close to motorways, at major access roads to the cities or, for example, at shopping centers, so it is important to have in-depth local knowledge and a good local network.”

More information EDC Poul Erik Bech

Byhaven in Silkeborg offers 98 quality rental apartments

More information

Tonny Broberg, Project Manager, EDC Project Poul Erik Bech • tobr@edc.dk • +45 5858 8424

Daniel Staal, Partner, EDC Torben Larsen dst@edc.dk • +45 5858 7485

Lars Larsen Group and Bach Invest together consume the role of developer behind the construction of Byhaven in Borgergade in scenic Silkeborg. Here, 98 architect-designed and well-planned rental homes are being built as 3 or 4-room apartments in a size range between 95-115 m2. More than 100 parking spaces are also planned, with the possibility of establishing charging stations. Byhaven was designed by Laban Architects, and EDC Project Poul Erik Bech has just been chosen to be in charge of letting the homes. The focus is on community, with many green breathing holes and enriching urban space between the tower buildings.

Byhaven will contain 98 rental apartments at the northern end of Alderslyst on Borgergade in Silkeborg, close to the city center. The project consists of five tower buildings with a floor area of approx. 10,000 m2, and construction is already well underway. The area is undergoing a significant transfor mation with several interesting building projects, located in an area with everyday facilities within walking distance and easy access to the city center, the motorway, and thus the rest of East and Central Jutland.

Jesper Bach, director and owner of Bach Invest A/S says, “The construction of Byhaven in Silkeborg is progressing according to the plan, and we already have the first model home ready in December 2022. The rental apartments are expected to be completed and ready for occupancy in November 2023. We are pleased to have entered an agreement with EDC Poul Erik Bech on letting out the homes, so those interested will soon be able to sign up. With Byhaven, we want to contribute with an innovative urban development project to the delight of a diverse collection of tenants. The focus is on creating green breathing holes with the possibility of a strong social community and enriching urban space between the houses.”

“With its central location facing Borgergade, we are col laborating with the Lars Larsen Group on creating a quality building that, with its architecture, fits in well with the sur roundings and will help to strengthen the green character of the district. With Byhaven, we are creating an enclave in the district close to Silkeborg’s center, which adds not only inter esting housing and architecture but also creates exciting and different urban spaces for the use and enjoyment of future residents,” Jesper Bach says.

Urban development and green community

Henrik Kamp Ditlev, partner and architect at Laban Archi tects, says, “Byhaven is an urban development project with a focus on the life that takes place between the houses, which

is often neglected in modern residential construction. There will be pedestrian streets and square formations in a car-free environment, which calls for more interaction between the city’s citizens looking for community. Many plants and trees reinforce the environment, so the urban space is experienced as green breathing holes. The outdoor spaces are to be expe rienced on several levels: The street space, where the large private courtyard spaces are screened off, but take an active part in the life of the urban space. The large balconies provide good opportunities for staying and living. The large, shared roof terraces allow the residents of the individual floors to meet in more private outdoor spaces with space for greenery and a view of the city’s rooftops.”

Green urban gardens

Tonny Broberg, project manager, EDC Project Poul Erik Bech, says following about Byhaven in Silkeborg, “It is a super nice and exciting project where younger and elderly can culti vate community. The five tower buildings are constructed at heights ranging from 3-7 storeys. A roof terrace with living areas and a greenhouse will be built on the lower part of each block of flats. All the apartments are open and bright, with two facades oriented differently to optimize views and day light. The ground-floor flats have access to fenced courtyard spaces, and all the storeys have large private balconies.”

“We are proud to manage the rental in collaboration with EDC Torben Larsen in Silkeborg, and we expect a great de mand, as the housing types, sizes, and facilities in the area are adapted to the demand for rental housing in Silkeborg today. With the cooperation between several EDC departments, we ensure that at upcoming open house events, we can give everyone that is interested the attention required so that they can have a good experience of Byhaven. Not least con cerning the common areas, exhibition homes and perception of the exciting area the buildings are located in,” says Tonny Broberg.

Høje Taastrup C:

A new city within the city with a quarter of a million square meters construction

Things are progressing and exceeding all expectations in the new district, Høje Taastrup C, which will consist of a total of 249,000 m2 new construction, where 125,000 m2 is residential and 124,000 m2 business, including offices, parking house, retail, café/restaurant, and a 9,000 m2 new town hall. EDC Poul Erik Bech is involved in several of the projects and is responsible for the letting of 157 sustainable rental homes (Oase Husene), the sale of 155 new sustain able owner-occupied homes (Cornelia Hus), the letting of 23,408 m² of offices (The Central). Soon we also expect to find tenants for several of the new retail stores.

Market Insight has appointed Peter Mering for Høje Taastrup C. He is the new director of the development company, Høje Taastrup C, and board member of Danske Shoppingcentre P/S (owned by ATP and Danica Pension), which, together with Høje-Taastrup Municipality and the Real Estate Agency ATPFA II P/S (owned by ATP and PFA), is behind Høje Taastrup C. He says,

“I agreed to the job, as I helped establish the development company, HTC, during my time as manager of Danica Ejendomme, and have since also been a board member. When the former director, Lars Bloch, chose to stop, it was natural for me to take over the project as I have extensive knowledge about it. I also felt that I was obligated to contribute to the project reaching its goal in the end with the sale of all building rights in the company. It’s a pretty amazing project and fascinating to be part of such an exciting urban development task.”

Coherent planned city

Peter Mering has been involved in the real estate industry for many years, where he has been in charge of Danica Ejendomme and SEB Ejendomme. In addition to the director job in Høje Taastrup C, he is, among other things, a board member of Danske Shoppingcentre, DSB Ejendomsudvikling, and the development company CØ, which is behind the large project, Papirøen, on Christiansholm. He says,

“It is very exciting to help drive the development and establishment of a brand-new district. Høje Taastrup C is not just a project area in the city, but it is a very thought-out and well-planned city with homes, businesses, offices, retail shops, and a new town hall. The housing is under construction, and many have already moved in and have Høje Taastrup as their new home. We have successfully attracted families with children who want to move away

from small and expensive housing in the city, and we see more and more bicycles with trailers for children, so we feel that we have largely succeeded with the project.”

“We did not expect it would progress at this speed and so successfully with selling all the residential building rights with a total of 125,000 m2 homes. It has been very positive. People are pleasantly surprised by the area when they come out and visit us, so there has been a lot of search and interest in the new homes. It is going well both with renting and selling the owner-occupied homes. In addition, the town hall construction is almost finished, which means that the employees can soon move in to the new super and inspiring premises on the 12th of December 2022. To that extent, the housing construction has shown the way. Now we need to get going in the commercial areas, where we, with the first attractive, nice, sustainable multi-use office building called The Central, will find tenants who want to work in Denmark’s fastest growing municipality.”

EDC with a significant role

Michael Thulstrup, key account manager at EDC Poul Erik Bech, says, “At EDC, we have been involved almost from the start of the project with the very first meetings, where it was only strategic thoughts on paper. It is fantastic to experience that things have gone so well with the project’s different parts. Now the district is coming to life, and many new things have happened every time we are out here. We are delighted that we are involved in so many of the projects.”

“We are responsible for the letting of 157 sustainable rental homes in Oase Husene, which are more than 75% let, the sale of 155 new sustainable owner-occupied homes in Cornelia Hus, where more than 85% have been sold, and we are also helping to let 23,408 m² of offices in The Central, which will be a beautiful and ambitious office building. At the same time, we are far with the negotiations, so we expect to find tenants for several of the new retail shops out here, which are at street level at the bottom of many of the homes.”

Høje Taastrup has a lot to offer

About the area, Peter Mering says, “The success of the pro-ject can be attributed to Høje Taastrup C as it is an attractive area where we can offer high-quality city life. We think holistically, where we create a coherent city with

good housing, attractive communal areas with good living and playing areas for both children and adults, easy access to public services, good shopping opportunities in City2, and close to public transport and new exciting business premises. It will be a green, sustainable City where more than 4,000 can work, and 3,000 new residents can live, shop, and have fun with their families. It is a super modern area with many excellent, brand-new apartments with a housing burden that is more affordable than in Copenhagen.”

“There is an excellent infrastructure close to one of Denmark’s busiest stations, where you can get to Copenhagen in 14 minutes. It is unique with so many things happening out here. The City2 shopping center has plenty of shopping and leisure facilities. The residents and those who work here have a shopping center within walking distance, with many excellent shops, a cinema, an ice rink, bowling, and mini golf. Outside there are playgrounds and ball fields, and we have initiated the world’s longest skating rink, which also functions as a LAR project with collecting rainwater to prevent flooding. In addition, the municipality has the world’s largest indoor go-kart track, ski hill, and new large green areas, so Høje Taastrup Municipality has a lot to offer.”

“After the sale of the last residential building rights, my task is to promote the sale of the commercial building rights so that the company’s mission can be completed. So, our task now is to get even more companies to find their way to Høje Taastrup C. I’m sure that the task will be completed successfully, as the homes fill up and the district gets more and more residents.”

Oase Husene: 157 sustainable homes of 59-109 m2, of which 30 are specially designed as senior-friendly homes with occupancy from the 15th of November 2022. PFA Pension is behind the project with 2-, 3- and 4-room well-furnished rental homes in the future park area. EDC Project Poul Erik Bech is responsible for letting the homes, where more than 75% are let.

Read more www.oasehusene.dk

The Central: An attractive, sustainable, multi-user office building on the way in Høje Taastrup C. Read more at www.thecentralhtc.dk

Cornelia Hus: EDC Project Poul Erik Bech has the task of selling the 155 homes individually. RHB Development and Heimstaden are building the 12,300 m². It is a huge success, as over 85% of the attractive owner-occupied homes have already been sold or reserved, so it is expected that they will be sold out long before the move-in by summer 2023. Read more www.corneliahus.dk.

Retail: Retail stores are built in most housing projects. EDC is negotiating to lease several retail stores, which are expected to come on the market soon.

Clever is building Denmark’s largest public ultra-fast charging station at a perfect location

Going forward, being an electric driver will be even easier if you are in Southern Jutland. Denmark’s leading charging operator, Clever, is giving the Southern Jutland’s charging infrastructure a significant upgrade with Denmark’s largest public ultra-fast charging station to date, which can charge electric cars with ultra-fast power from 0-80% in less than half an hour. To help choose the suitable locations, Clever has entered into a nationwide agreement with Denmark’s largest real estate company, EDC Poul Erik Bech, which has just found an ideal location at Aabenraa.

There is good news for electric drivers in Southern Jut land and those passing by. Before long, Denmark’s leading charging operator, Clever, will implement the country’s largest ultra-fast charging station to date, with around 30 charging points during 2023. The public ultra-fast charging station is localized at the E45 motorway at Rødekro/ Brunde, on Egevej 8 in Aabenraa, where electric drivers on the move can quickly and easily get power to drive further into the country,

“We know that the people of Southern Jutland have been asking for better charging options for a long time, and therefore we are very delighted to be able to give the charging infrastructure in the region a solid upgrade. A great number of people in Southern Jutland have the opportunity to get charging boxes installed at home, so they are not as dependent on public charging points, but we also know that many people in everyday life depend on ultra-fast charging on the go and then there is also a need for electric drivers, who plan to drive south,” says Casper Kirketerp-Møller, Director of Clever.

Still in the design phase

Clever and Cobe are working on the final design of the ultra-fast charging station at Aabenraa, but it is certain that it will be the largest of its kind in Denmark with its 6,000 m2. The ultra-fast charging station will be built in an organic and modular design reminiscent of Clever’s ultra-fast charging stations in both Esbjerg, Odense, and Køge, and it will be surrounded by trees and plants that suit the local area.

“When we have to design an ultra-fast charging station, there are many considerations about everything from how the exit should be placed in relation to the surrounding roads, space for cars with trailers, space for other facilities, etc.

Therefore, as of now, we cannot say with certainty exactly how many charging points Aabenraa’s ultra-fast charging station will have, but we can promise that it will be the largest of its kind in Denmark. In addition, it will be surrounded by trees and bushes that suit the area, and there will also be play elements, so that the electric drivers can awaken their senses and get good energy for the drive when the car has had enough power,” Casper KirketerpMøller says.

Nationwide agreement

EDC Poul Erik Bech assists Clever in finding land through out the country where the ultra-fast charging stations are to be built. For Thor Heltborg, Director of Corporate Clients, the agreement is an essential step in the process of strengthening the charging infrastructure around the country,

“We have activated our network of 19 business centers throughout the country and initiated a greater effort to search for all properties in specific locations based on Clever’s criteria. In this way, the properties with the greatest potential are selected, which Clever reviews and decides whether we should proceed. It is an exciting process, and we are pleased about the collaboration with Clever. It is a great satisfaction that we as a company can contribute to developing the green transition. We look forward to finding even more suitable locations for Clever.”

About the specific business site, Morten Rask Koch Dahl, partner at EDC Poul Erik Bech Aabenraa, says, “We have found a nice, large location of 6,000 m2 for Clever here in Aabenraa right next to the E45 motorway. It is a great location and the only place in the area where it makes sense to be located in relation to charging options. In the future, travellers and residents of Southern Jutland benefit from the largest ultra-fast charging station in a traffic hub. While the customers charge, there are plenty of prominent neighbors to visit such as Harald Nyborg, Circle K, Biltema, McDonalds, Burger King, and Davidsen.”

The ultra-fast charging station in Aabenraa is expected to be ready in Q3 2023 at the latest. It will be one of several charging stations in the country that Clever is expected to inaugurate during the following year. The company expects to open ultra-fast charging stations in Copenhagen, Thisted, Nørresundby, and Maribo.

Clever is on the way with a new ultra-fast charging station in Southern Jutland, which, with an expected 30 charging points, will be larger than the largest so far in Odense. EDC Poul Erik Bech has found the location for Clever.

Tofteengen 2 in Lynge is one of Denmark’s most secured buildings. The property consists of 2 large buildings and is primarily organised with large halls with good ceiling height. In addition, there are office sections with special fittings and a focus on extremely high security. The property is rented by The Danish Building Agency on a long-term contract. Vinkelvej 3 is an inviting and newly renovated investment property in the heart of Roskilde, which consists of 1 large building organized with newly renovated offices, a clinic, and a large usable base ment. The property is rented by the Danish Building Agency and Lægerne ved Røde Port, both on long-term contracts.

Tofteengen 2, 3450 Lynge/Vinkelvej 3, 4000 Roskilde Case no.: 40302418

Area: 12,471 m² Return: 3.95% Price: DKK 190,000,000

Contact: Kenneth Wagner, Partner EDC Poul Erik Bech, +45 5858 8395

The property at Fælledvej 1-3 consists of 139 rental apartments, primarily intended for students and younger people, as the homes are designed as smaller 1- and 2-room apartments. The property was used as an office building until 2014, and after renovation and re-organization in 2015, it was used as a residential property. The property has a fantastic location within walking distance to the city center and a short distance to several of the city’s educational institutions. The property includes 72 parking spaces, which are currently rented out as hourly parking with associated parking controls.

FORSALE

Sofiendalsvej

Sofiendalsvej

Aalborg Municipality

Sofiendalsvej

Contact: Stig Theilmann,

Baldersbuen 8 in Hedehusene is a 5,776 m2 warehouse/production property with highceilinged rooms and offices. The property, which is fully let, has a base area of 17,580 m2, which offers good opportunities for extensions. The property has good access conditions and has access to goods via ramps and the ground level. There are foreman’s offices and a lunchroom built in light modules that can be changed or removed along the facade. Offices and meeting rooms, with access via windbreaks, appear bright, and the property has two sections organized with bathrooms and changing rooms.

Contact: Mark Backhausen Real Estate Agent EDC Poul Erik Bech + 45 5858 8376

SOLDRetail property built in 2004 with a floor area of 4,153 m2 and 10,000 m2 base area. The property is located at Kirstinehøj 31 A-D in a fully developed, attractive area with a short distance to Tårnby Station and the Øresund motorway. The property has optimal parking facilities as well as access and exit conditions. The area accommodates several well-known neighbors, such as ILVA, Harald Nyborg, Silvan, Jysk, and others, which help establish good visibility and an influx of customers. At Kirstinehøj 37-39, another box store has been sold with a floor area of 2,258 m2 and 4,868 m2 base area.

Contact: Lars Damsholdt Balle, Partner EDC Poul Erik Bech + 45 5858 8397

The Northern Jutland Media House’s domicile has been sold to the investment company Tecta Invest. The property has been the domicile of The Northern Jutland Media House for more than 30 years, but the media house is moving next year to new premises at Østre Havn and has therefore now sold the 13,870 m2 property. Until the move in mid-2023, The Northern Jutland Media House will sublet at Tecta Invest. EDC Poul Erik Bech Aalborg has mediated the sale of the property at Langagervej 1, which has 6,477 m2 for warehouse/production, 7,393 m2 of office space and a large base area of 78,378 m2 with a great number of parking spaces and the possibility of further development and subdivision.

Contact: Frank Jensen, Director, Partner EDC Poul Erik Bech +45 5858 8449

SOLD

Fully let investment property in quiet business area with ideal location

Fully let “big box” – retail property in an attractive shopping area in Kastrup

The Northern Jutland Media House’s domicile in Aalborg East sold in a large real estate transaction

Two large Vesterbro properties sold for three-digit million amount

SOLD

Award-winning and unique office premises of 1,962 m² in Aarhus N

The unique residential tenancy at Tueager 1 is located in an attractive business area immediately next to Skejby Hospital. The property from 2008 is built in quality materials and is, among other things, honored with Aarhus Municipality’s architecture award for its beautiful design. For several years, the property has functioned as a multi-use building with both office and laboratory and has many possible uses. The many light walls make it easy to change the current interior design. The property is located on a 5,858 m² base area and has approx. 60 parking spaces.

Contact: Dan Honoré, Commercial Broker, EDC Poul Erik Bech +45 5858 8424

Two properties at Vesterbrogade 75 and Vesterbrogade 94, with a total of 5,819 m2, have been sold to Dreyers Fond. The properties were offered by the same seller, and Dreyers Fond is now expanding its property portfolio with further acquisitions in Vesterbro, Copenhagen, where the majority of the Fond’s properties are located. EDC Poul Erik Bech has mediated the sale of the two interesting Vesterbro properties, which consist of residential rental, retail shops, hotel, and club rooms – both with further development potential.

Contact: Helge Rud Larsen Real Estate Agent EDC Poul Erik Bech +45 5858 8378

Danish-founded Unisport has just leased 10,000 m² in an industrial property at Sleipnersvej 2 in Køge. This is happening due to massive growth and after the best financial year in the history of the football business. For Unisport, finding a location along the Køge Bugt Motorway and, at the same time, in an area with other logistics units was important. The real estate company, Mileway, owns the industrial property in Køge, and EDC Poul Erik Bech has been responsible for letting the property, where there is still 4,955 m² of vacant premises for storage and logistics.

Contact: Kenneth Hauge Jacobsen Commercial Broker, EDC Poul Erik Bech, +45 5858 8378

Danish People’s Aid and EDC Poul Erik Bech Foundation secure School Start Aid for all applicants

Even though the number of applicants for School Start Aid has increased by 43% from 2021 to 2022, Danish People’s Aid still has the opportunity to help all applicants this year. This is partly because the EDC Poul Erik Bech Foundation has chosen to donate DKK 6 million over the next 5 years to Danish People’s Aid for the project School Start Aid. According to Danish People’s Aid, the support for School Start Aid emphasizes the importance of all children getting a good start on a long educational process.

The first impression is always important. This also applies to children starting school, where the risk of becoming a victim of social stigmatization is more significant among children from economically disadvantaged families. Therefore, it is essential for children to get the best start if social well-being and the best possible conditions are to be ensured.

Secretary General of Danish People’s Aid Klaus Nørlem states, “A tight economy should not stand in the way of children’s joy in attending school, their opportunity to establish friendships and to later create the best conditions in life for themselves. The uncertainty of whether you can give your child the school start they deserve can take a toll on both parents and children. The increasing number of applicants gives food for thought, and it underlines the importance of School Start Aid, which alleviates this uncertainty. The interest in School Start Aid shows that education and school attendance is an area that we from all sides of society have to prioritise, and we are joyful to be able to help all applicants with the help they have asked for.”

you also want to helpvulnerable children a good start at school?

and backing from both private contributors, companies and funds, which make it possible to distribute School Start Aid to all approved applicants – especially because education and well-being at school are one of the most decisive factors in breaking down the negative social heritage. Klaus Nørlem says, “We are extremely grateful for the support from the EDC Poul Erik Bech Foundation, as we are now sure that we can help even more vulnerable children and families to get a good start at school on an equal footing with all other children.”

In collaboration with Danish People’s Aid,we support vulnerable children with schoolhelp. In 2022, we have jointly helped 2,257children with a good start at school.

At poulerikbechfonden.dk/skole youcan read more and help even morechildren get a good school start.

Support the children via DanishPeople’s Aid

Danish People’s Aid offers School Start Aid offers School Start Aid for the third year in a row. In 2020, 1,275 families applied, but unfortunately, there were only finances to distribute help to 500 families. Although that the number of applicants in 2021 increased to 1,571 and this year increased further to 2,257 families, all applicants will receive help this year.

Great support underlines the importance of education

At Danish People’s Aid, they are happy about the support

Jane Bech, director of the EDC Poul Erik Bech Foundation, says, “Starting school is a defining event in life. It is important that children become part of a positive community at school and do not feel different because of the family’s financial situation. Danish People’s Aid does a very professional job in relation to school start aid, and we are happy that we have the opportunity to contribute with the funding so that everyone who has applied this year receives School Start Aid. With the multi-year support, we wish to provide the opportunity for more long-term thinking and facilitate planning.”

This year, 2,257 families receive School Start Aid, which makes up all the applicants. The families receive a digital gift card with the value of DKK 3,000. The gift cards must be used for e.g., a school bag, pencil case, lunchbox, drinking bottle, reading books, exercise books, other learning aids and clothes for the first day of school. School Start Aid has been launched with support from EDC Poul Erik Bech Foundation, the Egmont Foundation, the Ole Kirk’s Foundation and others.

EDC Project Poul Erik Bech

W. P. Carey announces €64 million follow-on investment with Coop Danmark

W. P. Carey, a leading net lease REIT specialising in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, is pleased to announce the sale-leaseback of 16 grocery stores, net leased to leading Danish food retailer, Coop Danmark. The two transactions of approximately €40 million and €24 million closed in June and August, respectively, and include a commitment by W. P. Carey to acquire seven additional stores by the end of 2022, once refurbishments are completed. EDC International Poul Erik Bech has been the advisor of the case, and by the end of 2022, W. P. Carey will own 42 of Coop’s grocery stores.

Karolis Adlis, Executive Director, Investments, W. P. Carey, said, “We’re delighted to extend our partnership with Coop and add 16 high-quality assets to our portfolio. Coop is an established player that has seen tremendous growth as the grocery retail sector in Denmark has expanded. Denmark remains an important market for us along with the rest of the Nordics, in which we have invested over €900 million since our first transaction in 2001. We look forward to continuing our relationship with Coop moving forward.”

Flemming Møller Hansen, Real Estate Director at Coop Danmark, said, “We are thrilled to partner with W. P. Carey once again. This deal is demonstrative of the trust it has in our business model and will help to facilitate our national expansion strategy.”

Helle Nielsen Ziersen, Head of EDC International Poul Erik Bech, advisor to W. P. Carey, said, “It is always a pleasure to advise W. P. Carey, and this case was no exception. Tapping into their deep sector knowledge, fundamental understanding of the market and thorough professionalism, the team at W. P. Carey remain a great partner for corporates looking to realise the value of their real estate. The deal is reflective of the strong partnership built between Coop, W. P. Carey and EDC from prior successful transactions, and we look forward to this continuing over the long term.”

+45 5858

In total, W.P. Carey has carried out four sale-leaseback transactions for a total of 42 food stores with Coop. The map shows the locations of the food retail stores in Denmark.

• Market-leading tenant: With a history dating back to 1866, Coop is one of Denmark’s leading grocery retailers with a market share of over 30%. Coop has a well-diversified portfolio of brands accommodating all grocery retail sectors including, discount, supermarket, hypermarket and premium. The company has continued to evolve alongside the growth of e-commerce through innovation and significant investment in technology, including its Coop app and two online businesses: Coop.dk MAD and Coop.dk Shopping.

• Attractive retail locations: The portfolio comprises established food retail properties located in dense urban locations. Strict Danish planning laws and licensing requirements make opening new retail stores difficult, thereby providing inherent value to established food retail sites.

• Defensive industry: Proximity food retailers have benefited from increased consumer interest in at-home cooking, a trend accelerated by the COVID-19 pandemic, and discount retail in particular has been a growing sub-sector in Denmark, taking market share from other forms of retail.

• Strengthening relationship with tenant: The transaction follows two prior sale-leasebacks with Coop completed in December 2021 and February 2022. As a result, W. P. Carey will own 42 of Coop’s food retail stores by the end of 2022.

• Long-term leases with built-in rent growth: The newly acquired stores are net leased for a term of 15 years with Danish NPI-based rent increases.

”We have never experienced such great interest”

The letting of the new housing project Green Hills in Solrød is in full swing. The first two stages, with a total of 144 units, are essentially let, and the third stage of construction will soon be released. Balder Danmark is building the ambitious lighthouse project and has chosen EDC Project Poul Erik Bech to be responsible for the rental of a total of 294 rental properties. The building is expected to be completed in 2023.

In 2019, Balder Danmark won the tender for the attractive plot on Cordozavej in Solrød. The iconic building has received much attention due to its sustainable profile, beauti ful architecture, and appeal to all generations. Luisa Rosenberg, rental manager for projects in Balder Denmark, says,

“The attention has been overwhelming, and we at Balder have never experienced such great interest in one of our projects. It is also an impressive building, shaped based on high requirements for the building’s architecture, housing composition, and sustainability. The project is built around two ‘lighthouses,’ and soon, we will release the homes in the second tower, which is the third stage, and then stage 4 with a total of 150 rental apartments.”

“We chose EDC Project Poul Erik Bech to be in charge of the rental primarily because of their local knowledge and databased approach to the rental task. They have some excellent tools for pricing rental levels. Both concerning what is for sale in the area, what the rent levels are, and the general price evolution concerning the high quality of the construction. For us, it was a great reassurance that our decisions were supported by data, and it has also turned out to be the right decision, as the process has developed as we had hoped and even exceeded expectations with the rental of the first two stages.”

Sustainability thought in from the start

Green Hills is pre-certified for the acknowledged interna tional DGNB-Gold certification, which gives the project

About Green Hills

Green Hills is being built in a collaboration between Balder Danmark and Bovieran Danmark as builders, Sjælsø Man agement as project developer and management contractor, MOE as engineer, Danielsen Architecture, who designed the building, and Danielsen Urban Landscape who drew the lines for the landscape. The building will accommodate 350 homes

a holistic view of sustainability, where environmental, economic, and social sustainability is considered from the start. Kenneth Nielsen, project director, EDC Project Poul Erik Bech, says,

“We had a clear expectation that there would be great demand for the homes, which has proven to be better than we could have imagined. The lighthouse project is very eye-catching and characterized by the sloping roof surfaces with green plantings that rise towards the sky and meet at a point on the 9th floor and give a beautiful expression. The 294 rental properties vary in sizes from 2-6 rooms from 56 to 212 m2 and are spread over several different apartment types and floor plans.”

“It is a visionary project where the building’s varied housing composition means that everyone can live in Green Hills. There is room for all generations, families with children, seniors, couples, singles, and young people. In principle, you can live here your entire life. It has proven to appeal to many, and we feel convinced that there will also be massive demand for the third stage, which will soon be released, and later also the fourth stage.”

More information

Kenneth Nielsen, Project Director, EDC Project Poul Erik Bech • kni@edc.dk, tlf. +45 5858 8487

in total, of which Balder Danmark will build 294, with EDC Project Poul Erik Bech being responsible for letting. Bovieran Danmark is building a senior living community in the heart of the building, which contains 55 co-housing homes and a guest house. All homes in Bovieran have been sold. Read more about the project at www.balder.dk/green-hills

Q3 | 2022 MARKETUpdate

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.

 The figure is expected to increase  The figure is expected to remain unchanged  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.

The Danish economy

Annual GDP growth

by

GDP decline of 2% in 2020 due to covid-19

economy saw strong growth in 2021,

real growth rate of 4.9%. This progress was character-

reopening of several service industries and was in line

forecasts. The latest forecast from Nationalbanken shows an

growth of 2% and -0.1% in 2022 and 2023, respectively.

growth estimate for this year and the following year is

lower than the last forecast, hence expressing signs of

recession. Furthermore, the forecast shows signs of weaker economic growth in 2024, estimated at 1,2%.

rates

rates remain at a low level in a historical context, although long-term interest rates have risen markedly in 2022 so they are now on a par with what was observed in 2011. The upward pressure on long-term interest rates can be attributed to a combination of the rising economic activity following the reopening of most economies, supply chain disruptions, and rising energy prices. In Denmark, the long-term interest rate (10-year government bond) has risen sharply in recent months and is 4.79% as of September 2022. The short-term interest rate has also risen sharply. The short-term interest rate is 2.23% as of May 2022.

Source: Statistics

Consumer confidence indicates the population’s view of its current and future economic situation and is thus a good indicator of how the general population is affected by Denmark’s financial situation. Consumer confidence for September is at minus 32.1 and has thus fallen since last month and is the lowest level ever. In comparison, the indicator reached a record high in January 2006, at 15.5. The average for the last six months is minus 25.5. The decline in consumer confidence is primarily due to a sharp decline in the indicator of consumers’ assessment of Denmark’s financial situation today compared with a year ago.

The latest figures from Statistics Denmark from July 2022 show a decrease in the number of employees for the first time in 17 months. The number of employees decreased by 4,786 from June to July, which corresponding to a decrease of 0,2%. The decrease in number of employees is in particular due to a decrease in employees in the public administration and service sector. Although this, employment remains at a very high level having increased by a total of 199,132 people since January 2021.

Residential rental

newer properties

Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months

Area PrimeSecondaryTertiary Trend

Central Copenhagen

Østerbro, Frederiksberg and Gentofte

Harbour areas

Yield in % 3.25% 3.50% 3.75% 

Annual market rent in DKK/sq m 2,550 DKK 2,200 DKK 2,000 DKK 

Yield in % 3.25% 3.50% 3.75% 

Annual market rent in DKK/sq m 2,450 DKK 2,100 DKK 1,950 DKK 

Yield in % 3.25% 3.50% 3.75% 

Annual market rent in DKK/sq m 2,400 DKK 2,000 DKK 1,800 DKK 

Ørestad Yield in % 3.50% 3.75% 4.00% 

Annual market rent in DKK/sq m 1,900 DKK 1,800 DKK 1,700 DKK 

Remaining Copenhagen Yield in % 3.50% 3.75% 4.00% 

Annual market rent in DKK/sq m 2,300 DKK 2,000 DKK 1,800 DKK 

Western suburbs Yield in % 3.75% 4.25% 5.00% 

Annual market rent in DKK/sq m 1,750 DKK 1,600 DKK 1,500 DKK 

Northern suburbs Yield in % 3.50% 4.00% 4.50% 

Annual market rent in DKK/sq m 2,000 DKK 1,750 DKK 1,500 DKK 

North Zealand Yield in % 3.50% 4.25% 5.00% 

Annual market rent in DKK/sq m 1,900 DKK 1,650 DKK 1,400 DKK 

East Zealand Yield in % 4.00% 4.50% 5.75% 

Annual market rent in DKK/sq m 1,900 DKK 1,600 DKK 1.300 DKK 

West Zealand Yield in % 4.50% 5.25% 6.25% 

Annual market rent in DKK/sq m 1,500 DKK 1,300 DKK 1,000 DKK 

South Zealand Yield in % 4.75% 5.75% 6.50% 

Annual market rent in DKK/sq m 1,350 DKK 1,100 DKK 950 DKK 

Odense Yield in % 4.00% 4.50% 5.00% 

Annual market rent in DKK/sq m 1,450 DKK 1,250 DKK 1,100 DKK 

Other Funen Yield in % 4.50% 5.25% 6.00% 

Annual market rent in DKK/sq m 1,200 DKK1,050 DKK 950 DKK 

Vejle Yield in % 4.50% 5.00% 5.75% 

Annual market rent in DKK/sq m 1,350 DKK 1,200 DKK 1,000 DKK 

Kolding Yield in % 5.00% 5.50% 6.50% 

Annual market rent in DKK/sq m 1,250 DKK 1,100 DKK 950 DKK 

Fredericia Yield in % 5.25% 5.75% 6.50% 

Annual market rent in DKK/sq m 1,150 DKK 1,050 DKK850 DKK 

Esbjerg Yield in % 4.75% 5.25% 6.00% 

Annual market rent in DKK/sq m 1,200 DKK1,050 DKK 900 DKK 

Other South Jutland Yield in % 5.50% 6.25% 6.75% 

Annual market rent in DKK/sq m 1,150 DKK 900 DKK 750 DKK 

Aarhus Yield in % 3.50% 4.00% 4.75% 

Annual market rent in DKK/sq m 1,800 DKK 1,550 DKK 1,350 DKK 

Silkeborg Yield in % 4.25% 5.25% 6.00% 

Annual market rent in DKK/sq m 1,400 DKK 1,150 DKK1,000 DKK 

Viborg Yield in % 4.75% 5.25% 6.00% 

Annual market rent in DKK/sq m 1,125 DKK 1,000 DKK 850 DKK 

Herning Yield in % 4.75% 5.50% 6.75% 

Annual market rent in DKK/sq m 1,200 DKK 1,050 DKK 900 DKK 

Aalborg Yield in % 4.00% 4.50% 5.00% 

Annual market rent in DKK/sq m 1,350 DKK 1,150 DKK 950 DKK 

Hjørring Yield in % 4.75% 5.75% 6.50% 

Annual market rent in DKK/sq m 1,150 DKK950 DKK 775 DKK 

Frederikshavn Yield in % 5.25% 6.25% 7.00% 

Annual market rent in DKK/sq m 1,050 DKK 850 DKK 650 DKK 

Source: EDC International Poul

Residential rental

fully developed properties

Yield in %, annual rent in DKK/sq m incl. operating expenses and trends for the next 12 months

Area PrimeSecondaryTertiary Trend

Central Copenhagen

Østerbro, Frederiksberg and Gentofte

Remaining Copenhagen

Yield in % 3.25% 3.50% 3.75% 

Annual rent in DKK/sq m 1,800 DKK 1,650 DKK 1,500 DKK 

Yield in % 3.25% 3.75% 4.25% 

Annual rent in DKK/sq m 1,750 DKK 1,650 DKK 1,550 DKK 

Yield in % 3.50% 3.75% 4.25% 

Annual rent in DKK/sq m 1,700 DKK 1,600 DKK 1,500 DKK 

Western suburbs Yield in % 4.00% 4.75% 5.75% 

Annual rent in DKK/sq m 1,600 DKK 1,525 DKK 1,225 DKK 

Northern suburbs Yield in % 3.75% 4.25% 5.00% 

Annual rent in DKK/sq m 1,500 DKK 1,450 DKK 1,225 DKK 

North Zealand Yield in % 3.75% 4.25% 5.25% 

Annual rent in DKK/sq m 1,500 DKK 1,350 DKK 1,250 DKK 

East Zealand Yield in % 4.25% 4.75% 6.25% 

Annual rent in DKK/sq m 1,600 DKK 1,300 DKK 1,000 DKK 

West Zealand Yield in % 4.75% 6.00% 7.50% 

Annual rent in DKK/sq m 1,150 DKK 900 DKK 750 DKK 

South Zealand Yield in % 5.00% 6.00% 7.50% 

Annual rent in DKK/sq m 1,200 DKK 900 DKK 700 DKK 

Odense Yield in % 4.00% 4.75% 5.50% 

Annual rent in DKK/sq m 900 DKK 850 DKK 800 DKK 

Other Funen Yield in % 5.25% 6.00% 7.25% 

Annual rent in DKK/sq m 800 DKK 700 DKK 600 DKK 

Vejle Yield in % 5.00% 5.75% 6.25% 

Annual rent in DKK/sq m 1,100 DKK 1,000 DKK 800 DKK 

Kolding Yield in % 5.00% 5.75% 6.75% 

Annual rent in DKK/sq m 1,150 DKK 975 DKK 850 DKK 

Fredericia Yield in % 5.50% 6.00% 7.00% 

Esbjerg

Annual rent in DKK/sq m 1,100 DKK 950 DKK 800 DKK 

Yield in % 4.75% 5.50% 6.50% 

Annual rent in DKK/sq m 1,100 DKK 800 DKK 600 DKK 

Other South Jutland Yield in % 5.75% 6.50% 7.75% 

Annual rent in DKK/sq m 1,000 DKK 950 DKK 750 DKK 

Aarhus Yield in % 3.50% 4.25% 5.00% 

Annual rent in DKK/sq m 1,575 DKK 1,350 DKK 1,200 DKK 

Silkeborg Yield in % 4.25% 5.00% 7.00% 

Annual rent in DKK/sq m 1,350 DKK 900 DKK 650 DKK 

Viborg Yield in % 5.00% 6.00% 7.75% 

Annual rent in DKK/sq m 1,100 DKK 850 DKK 650 DKK 

Herning Yield in % 4.75% 5.75% 7.00% 

Annual rent in DKK/sq m 1,300 DKK 875 DKK 550 DKK 

Aalborg Yield in % 4.00% 4.75% 5.50% 

Annual rent in DKK/sq m 1,150 DKK 1,100 DKK 900 DKK 

Hjørring Yield in % 5.25% 5.75% 7.00% 

Annual rent in DKK/sq m 900 DKK 800 DKK 700 DKK 

Frederikshavn Yield in % 5.25% 6.25% 7.50% 

Annual rent in DKK/sq m 850 DKK 750 DKK 650 DKK 

Source: EDC International Poul Erik Bech, estimates as of Q3 2022

Residential rental older properties

in percent and trends for the next 12 months

Area PrimeSecondaryTertiary Trend

Central Copenhagen Yield in % 1.00% 1.75% 2.50% 

Østerbro, Frederiksberg and Gentofte Yield in % 1.25% 1.75% 2.25% 

Remaining Copenhagen Yield in % 2.25% 2.75% 3.25% 

Western suburbs Yield in % 3.75% 4.50% 5.25% 

Northern suburbs Yield in % 3.75% 4.50% 5.75% 

North Zealand Yield in % 3.50% 4.00% 5.25% 

East Zealand Yield in % 3.75% 5.00% 6.50% 

West Zealand Yield in % 5.00% 6.25% 7.25% 

South Zealand Yield in % 4.50% 5.25% 6.50% 

Odense Yield in % 3.50% 4.50% 5.25% 

Other Funen Yield in % 5.25% 5.50% 7.00% 

Vejle Yield in % 5.00% 5.50% 6.00% 

Kolding Yield in % 5.50% 6.00% 6.50% 

Fredericia Yield in % 6.00% 6.75% 7.25% 

Esbjerg Yield in % 4.25% 5.00% 6.00% 

Other South Jutland Yield in % 5.50% 6.00% 6.50% 

Aarhus Yield in % 1.50% 2.75% 4.50% 

Silkeborg Yield in % 4.50% 5.50% 6.75% 

Viborg Yield in % 4.50% 5.50% 7.00% 

Herning Yield in % 4.50% 5.50% 6.75% 

Aalborg Yield in % 3.25% 4.50% 5.75% 

Hjørring Yield in % 5.25% 6.25% 7.00% 

Frederikshavn Yield in % 5.75% 6.75% 7.50% 

Source: EDC International Poul Erik Bech, estimates as of Q3 2022

Office

Area PrimeSecondaryTertiary Trend

Central Copenhagen

Østerbro, Frederiksberg and Gentofte

Harbour areas

Yield in % 3.50% 4.00% 5.00% 

Annual market rent in DKK/sq m 2,650 DKK 1,800 DKK 1,400 DKK 

Yield in % 3.75% 4.50% 5.50% 

Annual market rent in DKK/sq m 2,350 DKK 1,600 DKK 1,300 DKK 

Yield in % 3.25% 4.25% 5.50% 

Annual market rent in DKK/sq m 2,650 DKK 1,850 DKK 1,600 DKK 

Ørestad Yield in % 4.00% 4.50% 5.75% 

Annual market rent in DKK/sq m 2,050 DKK 1,600 DKK 1,400 DKK 

Remaining Copenhagen Yield in % 4.00% 5.00% 6.00% 

Annual market rent in DKK/sq m 1,800 DKK 1,300 DKK 900 DKK 

Western suburbs Yield in % 4.50% 6.50% 9.00% 

Annual market rent in DKK/sq m 1,450 DKK 850 DKK 500 DKK 

Northern suburbs Yield in % 4.00% 5.50% 8.25% 

Annual market rent in DKK/sq m 1,600 DKK 1,350 DKK 750 DKK 

North Zealand Yield in % 4.50% 5.50% 8.00% 

East Zealand

Annual market rent in DKK/sq m 1,400 DKK 1,000 DKK 700 DKK 

Yield in % 6.25% 7.25% 10.50% 

Annual market rent in DKK/sq m 1,400 DKK 900 DKK 400 DKK 

West Zealand Yield in % 7.00% 8.25% 11.00% 

Annual market rent in DKK/sq m 1,200 DKK800 DKK 300 DKK 

South Zealand Yield in % 6.50% 8.00% 10.00% 

Annual market rent in DKK/sq m 1,000 DKK750 DKK 300 DKK 

Odense Yield in % 5.25% 6.25% 8.25% 

Annual market rent in DKK/sq m 1,500 DKK 1,000 DKK 600 DKK 

Other Funen Yield in % 6.25% 7.75% 9.50% 

Annual market rent in DKK/sq m1,200 DKK 800 DKK 400 DKK 

Vejle Yield in % 6.00% 7.50% 10.00% 

Annual market rent in DKK/sq m 1,400 DKK950 DKK 550 DKK 

Kolding Yield in % 6.50% 8.25% 9.25% 

Annual market rent in DKK/sq m 1,350 DKK 800 DKK 425 DKK 

Fredericia Yield in % 6.50% 7.75% 9.75% 

Annual market rent in DKK/sq m 1,300 DKK 900 DKK 500 DKK 

Esbjerg Yield in % 6.50% 8.00% 10.00% 

Other South Jutland

Annual market rent in DKK/sq m 1,400 DKK 900 DKK 400 DKK 

Yield in % 6.50% 7.50% 11.50% 

Annual market rent in DKK/sq m 1,150 DKK 700 DKK 400 DKK 

Aarhus Yield in % 4.00% 5.00% 8.25% 

Annual market rent in DKK/sq m 1,800 DKK 1,450 DKK 600 DKK 

Silkeborg Yield in % 5.75% 6.75% 9.00% 

Annual market rent in DKK/sq m 1,250 DKK 700 DKK 400 DKK 

Viborg Yield in % 5.75% 7.00% 9.00% 

Annual market rent in DKK/sq m 1.000 DKK 650 DKK 400 DKK 

Herning Yield in % 6.00% 6.75% 9.00% 

Annual market rent in DKK/sq m 1.150 DKK 700 DKK 400 DKK 

Aalborg Yield in % 5.25% 6.00% 7.00% 

Annual market rent in DKK/sq m 1,300 DKK 900 DKK 550 DKK 

Hjørring Yield in % 6.50% 7.50% 11.00% 

Annual market rent in DKK/sq m 950 DKK 650 DKK 350 DKK 

Frederikshavn Yield in % 7.00% 8.00% 11.00% 

Annual market rent in DKK/sq m 800 DKK 450 DKK 300 DKK 

Source: EDC International Poul

Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months

availabilityOffice

Retail

Area PrimeSecondaryTertiary Trend

Strøget

Central Copenhagen

Yield in % 3.50% 4.00% 4.50% 

Annual market rent in DKK/sq m 18,500 DKK 10,000 DKK 5,500 DKK 

Yield in % 4.50% 5.25% 5.75% 

Annual market rent in DKK/sq m 4,250 DKK 2,250 DKK 1,500 DKK  Østerbro, Frederiksberg and Gentofte

Yield in % 5.00% 5.75% 7.00% 

Annual market rent in DKK/sq m 4,000 DKK 2,250 DKK 1,400 DKK 

Harbour areas Yield in % 4.75% 5.50% 6.00% 

Annual market rent in DKK/sq m 2,500 DKK 1,800 DKK 1,500 DKK 

Ørestad Yield in % 5.50% 6.25% 7.00% 

Annual market rent in DKK/sq m 2,400 DKK 1,750 DKK 1,500 DKK 

Remaining Copenhagen Yield in % 5.25% 6.00% 7.25% 

Annual market rent in DKK/sq m 3,000 DKK 1,750 DKK 900 DKK 

Western suburbs Yield in % 5.50% 6.75% 8.75% 

Annual market rent in DKK/sq m 2,500 DKK 1,500 DKK 800 DKK 

Northern suburbs Yield in % 4.75% 5.75% 7.00% 

North Zealand

Annual market rent in DKK/sq m 4,500 DKK 2,000 DKK 1,000 DKK 

Yield in % 5.00% 6.50% 7.75% 

Annual market rent in DKK/sq m 3,600 DKK 1,800 DKK 700 DKK 

East Zealand Yield in % 5.75% 7.25% 9.00% 

Annual market rent in DKK/sq m 2,300 DKK1,300 DKK 900 DKK 

West Zealand Yield in % 6.25% 7.75% 10.00% 

Annual market rent in DKK/sq m 1,700 DKK 850 DKK 400 DKK 

South Zealand Yield in % 6.25% 7.25% 9.50% 

Annual market rent in DKK/sq m 2.000 DKK 850 DKK 450 DKK 

Odense Yield in % 5.75% 6.75% 8.00% 

Annual market rent in DKK/sq m 5,250 DKK 2,500 DKK 550 DKK 

Other Funen Yield in % 6.25% 7.25% 10.00% 

Vejle

Annual market rent in DKK/sq m 2,300 DKK 1,250 DKK 500 DKK 

Yield in % 6.00% 7.00% 9.00% 

Annual market rent in DKK/sq m 3,000 DKK 1,500 DKK 750 DKK 

Kolding Yield in % 6.25% 7.25% 8.75% 

Annual market rent in DKK/sq m 1,950 DKK 1,225 DKK575 DKK 

Fredericia Yield in % 7.00% 8.00% 9.50% 

Annual market rent in DKK/sq m 1,600 DKK950 DKK 500 DKK 

Esbjerg Yield in % 6.50% 7.50% 9.50% 

Annual market rent in DKK/sq m 2,500 DKK 1,000 DKK 500 DKK 

Other South Jutland Yield in % 6.50% 7.50% 9.50% 

Annual market rent in DKK/sq m 1,700 DKK 1,200 DKK 400 DKK 

Aarhus Yield in % 4.50% 5.25% 7.00% 

Annual market rent in DKK/sq m 6,000 DKK 2,500 DKK 900 DKK 

Silkeborg Yield in % 6.00% 7.00% 8.50% 

Annual market rent in DKK/sq m 2,150 DKK 1,000 DKK 500 DKK 

Viborg Yield in % 5.50% 6.50% 8.00% 

Annual market rent in DKK/sq m 2,500 DKK 1,000 DKK 475 DKK 

Herning Yield in % 6.25% 7.00% 9.00% 

Annual market rent in DKK/sq m1,700 DKK 900 DKK500 DKK 

Aalborg Yield in % 5.00% 6.25% 8.00% 

Annual market rent in DKK/sq m 4,000 DKK 1,800 DKK 900 DKK 

Hjørring Yield in % 6.75% 7.75% 9.75% 

Annual market rent in DKK/sq m 1,400 DKK 750 DKK 400 DKK 

Frederikshavn Yield in % 7.00% 8.00% 10.25%

Annual market rent in DKK/sq m 1,100 DKK 675 DKK 350 DKK 

Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months

Industrial

Yield in %, annual market rent in DKK/sq m incl. operating expenses and trends for the next 12 months

Area PrimeSecondaryTertiary Trend

Remaining Copenhagen

Western suburbs

Yield in % 4.50% 5.50% 6.00% 

Annual market rent in DKK/sq m 1,000 DKK 800 DKK 600 DKK 

Yield in % 5.25% 7.00% 9.50% 

Annual market rent in DKK/sq m 700 DKK 550 DKK 400 DKK 

Northern suburbs Yield in % 5.75% 6.75% 8.00% 

North Zealand

Annual market rent in DKK/sq m 650 DKK 500 DKK 350 DKK 

Yield in % 5.75% 7.00% 8.50% 

Annual market rent in DKK/sq m 650 DKK 475 DKK 350 DKK 

East Zealand Yield in % 4.50% 6.00% 9.00% 

Annual market rent in DKK/sq m 700 DKK 500 DKK 300 DKK 

West Zealand Yield in % 6.50% 8.25% 10.00% 

South Zealand

Annual market rent in DKK/sq m 550 DKK 350 DKK 200 DKK 

Yield in % 6.75% 8.00% 10.25% 

Annual market rent in DKK/sq m 475 DKK 300 DKK 200 DKK 

Odense Yield in % 5.25% 6.50% 8.50% 

Annual market rent in DKK/sq m525 DKK 350 DKK 250 DKK 

Other Funen Yield in % 5.50% 8.00% 10.00% 

Annual market rent in DKK/sq m 450 DKK 300 DKK 175 DKK 

Vejle Yield in % 5.25% 7.25% 9.50% 

Annual market rent in DKK/sq m 550 DKK 350 DKK 250 DKK 

Kolding Yield in % 5.25% 7.50% 9.75% 

Annual market rent in DKK/sq m 550 DKK 375 DKK 225 DKK 

Fredericia Yield in % 5.00% 6.75% 8.50% 

Annual market rent in DKK/sq m 600 DKK 350 DKK 225 DKK 

Esbjerg Yield in % 5.75% 7.50% 10.00% 

Annual market rent in DKK/sq m 475 DKK 300 DKK 200 DKK 

Other South Jutland Yield in % 6.75% 9.00% 11.25% 

Annual market rent in DKK/sq m 450 DKK 325 DKK 200 DKK 

Aarhus Yield in % 5.00% 6.75% 9.00% 

Annual market rent in DKK/sq m 575 DKK 425 DKK 300 DKK 

Silkeborg Yield in % 6.25% 7.75% 10.00% 

Annual market rent in DKK/sq m 450 DKK 350 DKK 200 DKK 

Viborg Yield in % 6.00% 7.75% 10.00%  Annual market rent in DKK/sq m 450 DKK 350 DKK 250 DKK 

Herning Yield in % 6.25% 7.75% 10.00% 

Annual market rent in DKK/sq m 400 DKK 300 DKK 200 DKK 

Aalborg Yield in % 5.75% 7.00% 9.00% 

Annual market rent in DKK/sq m500 DKK 375 DKK 250 DKK 

Hjørring Yield in % 6.75% 9.00% 11.00% 

Annual market rent in DKK/sq m400 DKK 300 DKK 200 DKK 

Frederikshavn Yield in % 7.00% 9.00% 11.75% 

Annual market rent in DKK/sq m 400 DKK 275 DKK 150 DKK 

Source: EDC International Poul Erik Bech, estimates as of Q3 2022