CPH Industrial__Locations_Online_MR19

Location descriptions Copenhagen | Industrial/logistics

Published by Colliers International. Reproduction or citation only with acknowledgement of source.

This is an online addition to The Copenhagen Market Report 2019, based on market data that we believe are reliable. Please note that the rental prices quoted may reflect data incon- sistencies compared to the respective pre-merger (July 2018) databases of Colliers International and/or Sadolin & Albæk. Whilst every effort has been made to ensure that the infor- mation provided in the report is both accurate and complete, Colliers accepts no liability for factual errors.

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Location descriptions | Industrial/logistics – Market Report 2019

Industrial/logistics Greater Copenhagen

Typical rent levels, Greater Copenhagen, industrial/logistics

Change Market Expectations

2016

2017

2018

2019

2018-19

2019

Prime

(1) Birkerød/Allerød Hillerød

450

450

450

475

6%

Secondary

300

300

300

325

8%

(2) Ballerup/Måløv

450

450

450

450

0%

275

300

300

300

0%

(3) Brøndby/Glostrup Herlev

475

475

500

525

5%

300

300

325

350

8%

(4) The south corridor

550

575

575

575

0%

325

325

325

350

8%

(5) Avedøre

525

525

525

550

5%

300

325

350

375

7%

(6) Amager/Kastrup 1

900

1,000

1,000

1,050

5%

300

325

350

350

0%

Note: Rent levels quoted in DKK per sqm p.a. exclusive of operating costs and taxes. Market expectations indicate trend forecast for the next 12 months. 1 Prime rent quoted for premises situated in the eastern part of Copenhagen Airport. Source: Colliers International

Frederiksværk

Typical industrial/ logistics rent levels

Hillerød

Note: Rent levels quoted in DKK/sqm/p.a., excluding operating costs and taxes, at the beginning of the year. 1 Prime rent quoted for premises situated in the eastern part of Copenhagen Airport.

Hørsholm

(1) Birkerød/Allerød/Hillerød

Allerød

Prime rent

475 325

Secondary rent

Birkerød

Frederikssund

(2) Ballerup/Måløv Prime rent

450 300

Secondary rent

Lyngby

Ballerup

(3) Brøndby/Glostrup/Herlev

Prime rent

525 350

Copenhagen (København)

Secondary rent

Glostrup

Høje-Taastrup

(4) The south corridor

Prime rent

575 350

Secondary rent

Greve

(5) Avedøre

(6) Amager/Kastrup 1

Prime rent

550 375

Prime rent

1,050

350

Secondary rent

Secondary rent

Køge

Market expectation Airport

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Location descriptions | Industrial/logistics – Market Report 2019

Industrial/logistics Greater Copenhagen

 Birkerød/Allerød/Hillerød Situated north of Copenhagen, the towns of Birkerød, Allerød and Hillerød generally feature a stock of built-to-suit production facilities that fail to meet today’s tenant require- ments. Dating from the 1960s to 1980s, they typically comprise an ancillary office unit at the front and industrial/warehouse facilities at the back. As such, facilities are in very low demand and somewhat susceptible to structural vacancy. However, it is worth mentioning that the area has an important concentration of modern production facilities for pharmaceutical, biotech and medtech industries, including Novo Nordisk and Biogen.  Ballerup/Måløv Other districts include Ballerup northwest of Copenhagen, where the building stock largely resembles that of Birkerød/Allerød/Hillerød, i.e. typically with too large office components as well as insufficient ceiling heights and loading docks, etc., rendering them less suitable for today’s logistics purposes.  Brøndby/Glostrup/Herlev (the west corridor) Typically located along the Ring Road 3 corridor west of Copenhagen, traditional Greater Copenhagen industrial districts start at Brøndby to the south, fanning out to Glostrup, Albertslund, Herlev and Gladsaxe. Developed some 50 years ago, more industrial prop- erties in this area are becoming functionally obsolete. However, because of great infra- structure and proximity to Copenhagen, the area attracts increasing demand for last mile distribution centres from businesses that realise the importance of quick delivery to customers in the Copenhagen area, both in terms of groceries and traditional specialty goods. As a result, the demand for a location near large housing districts in the Copenhagen area may well eclipse the demand for state-of-the-art facilities.  The south corridor The south corridor running between Køge and Høje-Taastrup benefits from such easy motorway access (the E20), linking to Copenhagen, all parts of Zealand as well as Jutland, Sweden and Germany. As the corridor is an important location for industrial and storage/logistics facilities, local plan provisions are up-to-date and in line with today’s

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Copenhagen Property Market Report 2019

requirements. This allows for the construction of efficient facilities standing up to 30 metres tall in selected commercial districts sized for heavy-goods vehicles.

At Køge, Scandinavian Transport Center (STC), continues to attract financially strong tenants looking for logistics facilities. Tenants include PostNord, Lemvigh-Müller, Lidl, DKI Logistics, Netto and pharmaceutical company Nomeco, the latter with a new state-of- the-art facility to handle distribution to the domestic and Nordic markets. At Høje-Taastrup, Copenhagen Markets (Grønttorvet) comprises three large-scale ware- houses with a total roofed-up area of 67,000 sqm on a 220,000 sqm site. It is the largest wholesale marketplace for fruit and vegetables in Scandinavia. At Greve, construction is ongoing on Greve Distribution Center (GDC), a state-of-the-art logistics facility right next to the main motorway on a 230,000 sqm site. The first tenants are expected to move in in early 2019.  Avedøre The industrial district of Avedøre Holme south of Copenhagen is marked by a substan- tial proportion of outdated facilities. Nevertheless, Avedøre Holme benefits from an outstanding location right next to the E20 motorway, effectively cutting transport times to Copenhagen. As the district is somewhat isolated from the surrounding residential areas, environmental concerns are slightly less of an issue. Given its strong logistics location, Avedøre Holme could become a popular district if newbuilding opportunities arise in the future. It is currently being discussed whether to expand Avedøre Holme. Such an expansion could boost the area. In January 2019, a consortium of the Danish Government, the Municipality of Hvidovre and the City of Copenhagen introduced a plan to establish ‘Holmene’, nine islands off Avedøre Holme, with development of the 3.1 million sqm site scheduled to begin in 2022 for completion in 2040. Such an expansion is expected to have a positive effect on the area.  Amager/Kastrup In the Copenhagen area, Copenhagen Airport offers airside lease opportunities for airport-related businesses, a fairly slim market segment, however in strong demand because of increasing air cargo volumes. As part of the expansion of Copenhagen Airport, a new cargo and logistics park is planned on a more than 30 ha site, Airport Business Park. Planning provisions allow for a building height of 22 metres, with no restrictions in terms of volume.