April 2020
The Danish Property Federation’s market statistics – vacancy • The vacancy increases slightly in all sectors leading up to the Corona crisis. • Retail increases with 0.3 percentage points since January • Increase for retail and office in Copenhagen Centre • The vacancy for industry increases with 0.1 percentage points to 8.5 percent • The residential vacancy has increased with 0.1 percentage points since January 2020
The vacancy in April increases slightly The vacancy for residential as well as business leases increase nationally. Overall, it is a case of a small quarterly increase of 0.1 percentage points which is primarily based on an increasing vacancy for office and retail with 0.1 and 0.3 percentage points respectively. But the development is a continuation of the recent quarters’ increase in vacancy, especially with regards to rental of business leases. The latest development in the economic vacancy rate is mainly due to decisions made before the Corona crisis. There is no doubt that there is a considerable risk that the vacancy may increase in the future when the effects of the Corona virus show. It must be expected that it takes place gradually and if it is possible to make a sensible transition of the affected, there is hope that the vacancy does not increase as much as during the financial crisis.
Figure 1. Vacancy percentages, April 2020
Economic vacancy
9.3
The economic vacancy rate indicates how much of the rent is lost as a consequence of empty leases.
8.5 7.7
7.1
7.3
5.2
Office
Retail
Industry
Residential
Other commercial
Total
Change in percentage points
Change in percentage points
Change in percentage points
Change in percentage points
Change in percentage points
Change in percentage points
Quart.
An.
Quart.
An.
Quart.
An.
Quart.
An.
Quart.
An.
Quart.
An.
0.1
0.7
0.3
0.7
0.1
-1.0
0.1
1.4
0.8
1.9
0.1
0.7
The term is defined as: The sum of current annual rent in all empty leases divided by the sum of current annual rent in both rented and empty leases.
Source: The Danish Property Federation’s market statistics. Note.: The vacancy rates for all sectors also include actual annual rent and space for other commercial and secondary spaces.
1