COPENHAGEN, DENMARK-The local commercial real estate markets are faring at different degrees, with office slightly up, industrial flat and retail slightly down. However, neighbors Germany and Sweden have seen healthy growth, and exports to these countries are expected to grow and push Denmark into growth as well, according to a recent second quarter report by Colliers International.
According to the Colliers Status on Denmark report, office vacancy decreased from 8.1% in the first quarter to 7.7%. There are many small and mid-size companies looking to expand, and a number of large companies looking to relocate. However, unemployment still hovers around 6%. Sales are slower than 2010, with properties going on the market that lenders took back on their books to avoid losses.
Industrial property vacancy remains unchanged at 4.2%, with little demand reported. In retail, it’s still considered a tenant’s market, as vacancy increased about 200 basis points to 5.7%. Consumer spending is down in the country, and the outlook for the year is relatively low.
Hans Vestergaard, CEO of the local Colliers office, said the company expects demand to pick up, but there’s still caution as consumer confidence lags. “Despite a steadily expanding Danish economy, low business and consumer confidence, and restricted access to capital, will continue to tempter the growth of the real estate market,” he said in a statement.
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