THE DANISH PROPERTY FEDERATION MARKET STATISTICS – VACANCY COVERING THE PROFESSIONAL INVESTMENT PROPERTY MARKET IN DENMARK
October 2016
Results
WEB REPORT
the other hand existing office rentals in October and July show higher economic loss due to new vacancies compared to the rent coming in from new contracts. To summarize, the economic vacancy level is affected both by positive and negative factors.
• Economic vacancy decrease in all quarters 2016 • Office vacancy has decreased compared to last quarter
Thus, overall economic vacancy for office is decreasing but for existing office rentals there is still a need for further economic growth and increase in demand. If the economic growth does not show, we might see more conversions of existing offices leases.
• Further decrease in economic vacancy for office in Copenhagen CBD • Low residential vacancy
The economic vacancy for retail has a decrease of 0.2 percentage points, while the economic vacancy for industry is unchanged compared to last quarter. The vacancy for residential is low, showing an economic vacancy of 2.9 percent. There is a small increase for residential of 0.1 percentage points compared to last quarter.
Lower economic vacancy for investment properties
Spatial vacancy is also decreasing
Despite a low economic growth in Denmark the investment activity in Danish property is relatively good. It is encouraging that the economic vacancy is at a low level of 9.1 percent. A vacancy low comparison will have to be found in 2011. In 2007 before the financial crisis the economic vacancy was 4 percent, and thus the room for the economic vacancy to decrease further persists. Office economic vacancy has decreased by 0.3 percentage points to an economic vacancy rate of 12.3 percent. Over the last three years the economic vacancy has been stable at a level of 12-13 percent. The decrease of 0.3 percentage points for office has a variety of reasons. The average actual rent for present rentals increase, vacancy rent has decreased slightly, while vacant office rentals are converted to other purposes, mainly residential. On
In October 2016, the spatial vacancy rate for investment properties is 9.8 percent. This is a decrease of 0.3 percentage points compared to July. The spatial vacancy rate decreases both for office, retail and industry while there is a small increase in residential vacancy. The industry spatial vacancy rate of 11.9 percent represents a 6.0 percentage point decrease compared to January 2014, a major decrease, which might continue. This means, that measuring spatial vacancy, it is office with 13.9 percent that has the highest spatial vacancy and this is probably one of the reasons why a large amount of office space rentals is converted into e.g. residential space these years.
Table 1. Vacancy rates in October 2016
Economic vacancy rate
Office Retail Industry
Space vacancy rate
Vacancy (percent)
Quarterly change (percentage points)
Annual change (percentage points)
Vacancy (percent)
Quarterly change (percentage points)
Annual change (percentage points)
12.3
-0.3
0.3
13.9
-0.3
-0.2
8.3
-0.2
0.2
8.1
-0.1
-0.3
12.4
0.0
-0.7
11.9
-0.6
-2.2
Residential
2.9
0.1
0.1
2.8
0.2
0.0
Total
9.1
-0.2
-0.4
9.8
-0.3
-1.2
Source: The Danish Property Federation. The vacancy rate covering all sectors also include rent and space for other commercial sectors and secondary premises.
Published by the Danish Property Federation