Aarhus__Locations_Online_MR19

Copenhagen Property Market Report 2019

7

Retail In all parts of Denmark, retail markets are under pressure due to the increasing amount of online sales. This has led to a dichotomy in the market, where location has become paramount to retailers. The continued strong footfall in prime locations may serve to keep business afloat, whereas prospects are less bright in secondary locations. Consumer trends have shifted away from goods towards experiences. As a result, retail vacancy rates have inched upwards in recent quarters, and may continue to climb, resulting in downward pressure on rental levels, particularly for secondary locations. Prime locations in the high-street area, centered around Søndergade and including the streets of Ryesgade, Skt. Clemens Stræde and Immervad are thriving. Prime rents remain stable, today standing at DKK 7,000 per sqm p.a., excluding taxes and operating costs. Likewise, the central square of Store Torv remains a popular high-street location. Existing retailers include Bang & Olufsen, COS, G-Star Raw, Designers Remix, Peak Performance as well as Tiger of Sweden. Generally speaking, the streets running off the main high streets have seen a weaker trend, with Guldsmedegade in the so-called Latin Quarter of Aarhus as somewhat an exception, attracting relatively strong occupational demand. Dating back to the 15th century, the Latin Quarter of Aarhus features many well-preserved original buildings and structures, today serving as a unique setting for shoppers and visitors alike.