Colliers Copenhagen Property Market Report 2019

75

Copenhagen Property Market Report 2019

AARHUS N is a prime office location, which is generally less expensive than Aarhus C PRIME RENT: DKK 1,200 per sqm p.a. SECONDARY RENT: DKK 800 per sqm p.a.

In recent years, landlords have made sure to include minimum rent adjustment clauses in new tenancy agreements. In Aarhus C, 71% of the analysed tenancy agreements have provisions for annual rent increases of minimum 1.52% on average. Public sector tenants and the ‘Other’ business category account for the highest number of tenancy agreements subject to minimum rent adjustment. 2 Aarhus N – preferred location of public sector tenants In the analysis, Aarhus N accounts for about 26% of leases in terms of floorspace and about 28% of annual rent. Like Aarhus C, Aarhus N (northern Aarhus, or Skejby) is a prime office district, which is reflected in rent levels, with the average annual rent standing at DKK 1,052 per sqm, excluding operating costs and taxes. Today’s prime rent is estimated at DKK 1,200 and the secondary rent at DKK 800 per sqm. Commanding rents in the DKK 580-1,300 per sqm range, excluding operating costs and taxes, Aarhus N is a less expensive office location than Aarhus C by a margin of about DKK 200 per sqm p.a. However, it must be considered that parking is typically free in Aarhus N unlike in Aarhus C, where the monthly rent payable for a parking space is some DKK 1,000-1,200. From a tenant perspective, it may therefore be even less expensive to take a lease in Aarhus N. In recent years, Aarhus N has seen an influx of public sector tenants, typically taking large-size office leases (3,992 sqm on average), making this type of tenant the largest occupier of office space in Aarhus N in terms of sqm space, ahead of the professions as well as trade and technology businesses. The latter category pays the highest average rent per sqm (DKK 1,113), followed by public sector tenants (DKK 1,039) and the profes- sions (DKK 1,021). As for non-terminability weighted by sqm, trade and technology businesses take the lead with 84 months (7 years), driven by non-terminability periods of 5-10 years in Skejby. Public sector tenants have committed to terms of 72 months (6 years) on average,

FTE unemployment rates in university cities inflated by graduates

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

13

14

15

16

17

18

Denmark

Copenhagen

Aarhus

Source: Statistics Denmark