Newsletter_Q2_2018_UK

Newsletter Q2 2018

Increase in demand has outstripped increase in supply every year since 2014

-500,000 -400,000 -300,000 -200,000 -100,000 0 100,000 200,000 300,000 400,000

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Estimated demand

Supply

Note: Changes in supply and demand in terms of o ce space (sqm) in Greater Copenhagen. Demand is estimated based on movements in employment figures, followed by the application of an estimated factor relating to area requirement based on our market knowledge. Sources: Statistics Denmark, Ejendomstorvet.dk and Sadolin & Albæk

as a high proportion was scheduled for completion in 2009-2010.

environs fell substantially below the level to be expected. Office take-up levels were therefore below the level arguably warranted by the increase in employment figures. This effect has the markings of hidden demand, reflecting the difference between the change in the quantity of actually registered office vacancies and the theoretical change in vacancies based on changes in supply and demand, as reflected in employment figures.

Several parameters herald increase in speculative newbuilding Employment trends held up against the office supply and demand of the post-crisis years indi- cate that in 2010-2017, the net decline in the supply of available office premises in Copenhagen and

Since 2014, a significant hidden demand for o ce space has been building

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400,000

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100,000

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-500,000

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Actual change

Estimated change

Hidden demand (accumulated)

Note: Changes in supply and demand in terms of o ce space (sqm) in Greater Copenhagen. Demand is estimated based on actually registered vacant space. The estimated change is calculated as the dierence between changes in net supply and demand. Demand is estimated based on movements in employment figures, followed by the application of an estimated factor relating to area requirement based on our market knowledge. Sources: Statistics Denmark, Ejendomstorvet.dk and Sadolin & Albæk

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