Location descriptions. Industrial

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Copenhagen Property Market Report 2018

Industrial/logistics Greater Copenhagen

(1) 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 requirements. 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. (2) 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. (3) Brøndby/Glostrup/Herlev 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 properties in this area are becoming functionally obsolete. However, because of great infrastructure 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.