Copenhagen Property Market Report 2020

Odense in brief

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Copenhagen Property Market Report 2020

Bright outlook for industrial facilities In Odense too, the retail market is affected by e-commerce. We foresee lower top rent levels, while more affordable rent levels in secondary locations are expected to stagnate. In addition, low yields in e.g. Copenhagen and Aarhus have made some investors go further afield to other major towns and cities, serving to drive down yield requirements in Odense. In the office market, businesses typically demand new business premises. Along with the demand for easy access for the many commuters from other parts of Funen, several businesses have zoomed in on newly built properties on the outskirts of the city centre. In the city centre, this has rendered a number of old offices redundant, several of them being converted for residential use. We believe that centrally located office premises will retain their current rent levels, whereas properties in proximity of the motorway and the coming light rail, in particular in southern Odense, may well see rent increases. We do not anticipate any significant shifts in investors’ risk tolerance, and office yield requirements are therefore not likely to change in the short term. Odense is experiencing fairly strong demand for industrial and logistics facilities with low vacancy rates. We expect rent levels to remain fairly constant in the short term whereas yields may come under downward pressure.

Gode udsigter for industrilokaler Også i Odense er detailmarkedet ramt af nethandel, og vi venter lavere lejeniveauer på de bedste beliggenheder, mens de mere spiselige lejeniveauer på sekundære placeringer forventes at stagnere. Samtidig har de lave afkast i fx København og Aarhus fået nogle investorer til at søge mod andre større byer, og afkastkravene i Odense er derfor presset nedad. Kontormarkedet er præget af virksomhedernes efterspørgsel på nyere lokaler. Kombineret med ønsket om let adgang for de mange pendlere fra andre dele af Fyn er flere virksomheder søgt mod nyopførte ejendomme i udkanten af centrum. Det har efterladt en del ældre kontorer i centrum, og flere er omdannet til boliger. Vi vurderer, at lejen for centralt beliggende kontorlokaler vil fastholde niveauet, mens ejendomme tæt på motorvej og den kommende letbane, specielt i den sydlige del af Odense, kan få stigende leje. Vi venter ingen væsentlige ændringer i investorernes appetit på risiko, så afkastkravet for kontor vil næppe ændre sig på kort sigt. Odense oplever pæn efterspørgsel på industri- og logistiklokaler med lav tomgang. Vores vurdering er, at lejeniveauerne vil være rimeligt konstante i nærmeste fremtid, mens afkastkravet kan komme under pres.

N w

Demographic forecast for Odense

0-17 years

20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000

70y 50-69y 30-49y 18-29y 0-7y

18-29 years

30-49 years

50-69 years

20

22 21

25 24 23

26

27

28

29

+70 years

Source: Statistics Denmark