MR 2018

50

Copenhagen Property Market Report 2018

One single transaction defines investor origins in 2017

Chanel is opening a flagship store at Kongens Nytorv in an area otherwise known as a hotspot for cafés and restaurants. On the other hand, the shop lies close to five-star Hotel d’Angleterre, which may potentially benefit sales, and enjoys high visibility and excellent interior layout potential, which are clearly qualities associated with flagship stores. The redevelopment of the Danske Bank head office at Holmens Kanal also deserves mention: Over the next 5-10 years, there are plans to transform it into a new and attractive mixed-use residential and retail location, with the development of retail units based on the “Nordic Design Village” concept. On scheduled completion of the Copenhagen Metro expansion scheme in 2019, Kongens Nytorv will become a highly central hub, further strengthening its position from a retail perspective. In strictly geographical terms, the city’s pedestrian high-street area has traditionally rendered little room for expansion, but with Kongens Nytorv coming into play this seems to be changing. We therefore believe that the future Copenhagen high-street market will include the area that holds the Magasin department store and Hotel d’Angleterre, extending the high street by a T-shaped addition. By today’s definitions, the high street ends at Østergade, at Kongens Nytorv. As Copenhagen has become an international shopping and tourist destination, Copenhagen Airport has expanded its retail mix quite considerably, adding both domestic and international brands to its offering. To accommodate increased passenger traffic, the airport is expanding both transit and gate areas, with the terminal 2 transit area scheduled for completion this summer. Expanding by some 4,000 sqm, this transit area will accommodate 28 new shops and eating places, etc. With these initiatives, the airport continues to promote Copenhagen as an attractive shopping destination. Surge in F&B More than anything, recent years’ trends in the Food & Beverage (F&B) industry have seriously changed the Copenhagen retail landscape. New data from national trade association HORESTA and Statistics Denmark show that Danes spend an unprecedented amount of money on dining out. In combination with the increase in tourism and international recognition of the Danish restaurant scene, this has boosted the demand for retail units suitable for café or restaurant operations. In Copenhagen, a great many F&B and leisure-oriented shops have mushroomed in many parts of the city, gradually spreading to other Greater Copenhagen locations, incl. shopping centres. Food courts on the rise Along with the boom in the F&B industry, Copenhagen has seen food courts and markets as well as street food vendors and peddlers springing up across the city in the last couple of years, creating new hotspots. “Torvehallerne” at Israels Plads was among the first, followed by “Copenhagen Street Food” on the island of Papirøen, “Halvandet” on the island of Refshaleøen, and “Westmarket” in the district of Vesterbro. These food

Domestic

Foreign

64%

36%

Note: Retail transaction volume by investor origin. Source: Sadolin & Albæk

Core investments continue to push out value-add and opportunistic investments

72% Core 28% Value-add

Note: Transaction volume by investment type. Source: Sadolin & Albæk