THE DANISH PROPERTY FEDERATION MARKET STATISTICS – VACANCY COVERING THE PROFESSIONAL INVESTMENT PROPERTY MARKET IN DENMARK April 2016
Results
WEB REPORT
might adjust with a certain delay. At the moment, the economic vacancy for investment properties is impacted by market conditions, meaning that the economic vacancy is above the normal level.
• Decrease in office vacancy by with 0.3 percentage points • In two years, the economic vacancy rate for office has decreased by 4.4 percentage points in Copenhagen CBD
This goes especially for office, which over the last 15 years has had an average vacancy of approximately eight percent, which is four to five percentage points below the present level. It is therefore especially encouraging that the economic vacancy for office has decreased with 0.3 percentage point in the last quarter. Hopefully, this is the first sign of a future with more activity within the investment property market.
• Decrease in the spatial vacancy rates for all four sectors • Even lower vacancy rates for residential
The economic vacancy rate decreases with 0.1 percentage point
Increased activity within investment properties
The economic vacancy decreased in April 2016 with 0.1 percentage point compared to last quarter, while the economic vacancy is unchanged compared to last year.
The Danish society benefits from full employment and full activity within the property sector. As there will always be a certain unemployment, there will also be a certain economic vacancy.
The decrease in economic vacancy compared to last quarter is mainly due to office, which after having experienced an increased economic vacancy over the last three quarters has now experienced a decrease of 0.3 percentage point to 12.7 percent. From the statistics, office rentals included in both January and April 2016, we have
Two factors influence the level. One is the natural vacancy coming from moves and renovations. The other is determined by the state of the economy and that it takes time to adjust the supply with demand. While demand can change relatively quickly, the supply of premises
Table 1. Vacancy rates in April 2016
Economic vacancy rate Vacancy (percent)
Quarterly change (percentage points)
Annual change (percentage points)
Spatial vacancy rate Vacancy (percent)
Quarterly change (percentage points)
Annual change (percentage points)
Office
12.7
-0.3
1.3
14.6
-0.3
1.0
Retail
8.2
0.2
-1.9
7.6
-0.8
-1.1
Industry
13.4
0.2
0.4
13.7
-0.7
-1.1
Residential
3.0
-0.1
0.4
2.9
-0.1
0.4
Total
9.7
-0.1
0.0
10.8
-0.3
-0.2
Source: The Danish Property Federation Rem.: The vacancy rate covering all sectors also include rent and space for other commercial sectors and secondary premises.
Published by the Danish Property Federation
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