Newsletter_Q2_2018_UK

Newsletter Q2 2018

TOP-10 Localisation parameters

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59% Price

53% Good parking facilities

67% Building

50% Good accessibility by car

65% Confidence in landlord

functionality/ indoor climate

By means of regular interview-based surveys, Sadolin & Albæk monitors the decision-making process among busi- nesses looking for new lease premises. Among o„ce businesses in Greater Copenhagen, the following represents the top-10 “most important” determi- nants for the choice of premises:

3

4

1

2

5

40% Adjustment options

44% Conditions on arrival

41%

40%

39%

Proximity to Metro or S-train

Flexibility of lease agreement

Quality and signal value of lease premises

7

8

9

10

6

Source: Interviews conducted in 2017 by Megafon A/S on behalf of Sadolin & Albæk.

tions in a given commercial district are reflected in the supply of available commercial space. Today’s Greater Copenhagen office vacancy rate is about 7.5%, equivalent to some 900,000 sqm office vacan- cies or 35-40,000 workplaces. Office vacancies have been reduced by approximately 400,000 sqm since the peak in 2014, and today’s supply of vacant space includes a large proportion of premises that are outdated in terms of both layout and location. Overall, the vacancy rate for all storage/produc- tion facilities stands at about 2.5% in Greater Copen- hagen, equivalent to roughly 500,000 sqm space, similarly reflecting a large propor-tion of outdated premises. Potential development areas Access to efficient infrastructure seems to be one of the key drivers of current and future demand for commercial property. For the office segment, access to public transport and the general road grid is beli- eved to be a decisive factor driving demand and development opportunities as the right location enhances the ability of businesses to attract quali- fied labour from a large catchment area. If a loca- tion features intersecting infrastructure, for instance motorway and S-train or light-rail link, it is believed

to be well-positioned in the competition for busi- nesses and, by extension, workplaces.

The Copenhagen Metro extension, with the ongoing construction of the Cityringen circle line and planned links to Sydhavnen (the south harbour) and Ny Ellebjerg, is of vital importance for the attra- ctiveness of central Copenhagen, making up the palm of the so-called “Five Finger Plan”, but the commissioned light-rail link along the Ring Road 3 corridor is believed to enhance the attractiveness of commercial districts along Ring Road 3. However, it is important to take into consideration the under- lying demand for office space. In locations with train station proximity, the quantity of commercial space potentially designated for office use is believed to exceed demand; as a result, it is necessary to adjust the zoning of new districts so as to ensure that indi- vidual districts may gain some kind of critical mass over time. The number of prospective locations along Ring Road 3 is believed to be some five or six hubs, at most, for instance Traceet at DTU in Lyngby, Gladsaxe, Herlev, Ejby and Glostrup.

For businesses in the storage and logistics segment, the focus will be on commercial districts with

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