EjendomDanmark marked statistics - Vacancy (July 2016)

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THE DANISH PROPERTY FEDERATION MARKET STATISTICS – VACANCY COVERING THE PROFESSIONAL INVESTMENT PROPERTY MARKET IN DENMARK

July 2016

Results

WEB REPORT

increased by 0.3 percentage point compared to last quarter. One explanation is the high growth in e-commerce – which is seen in Denmark as well as abroad – and this puts pressure the most challenged parts of the retail sector. In July, a significant part of the increased vacancy for retail lies within larger leases in shopping centres. This is e.g. the case in the Zealand Region, where the retail vacancy has increased by 3.0 percentage points during the last quarter.

• Decrease in economic vacancy • Office vacancy still above average • Higher vacancy for retail • Another decrease in vacancy for residential

Economic vacancy rate decrease by 0.2 percentage points

Low vacancy rate for retail despite increase The positive development in overall vacancy is maintained by the low level interest rates and an increased economic activity leading to higher levels of investments and continuous high demand for residential. Thus, the vacancy for Danish investment properties in July 2016 has dropped to the lowest level since the start of the market statistics in January 2014. The total economic vacancy is 9.4 percent while the spatial vacancy is 10.1 percent. Another factor contributing to a continuous progress is an increased private consumption. In June, Statistics Denmark published that the retail sale increased with almost two percent in three months. The increase in consumption especially comes from other goods than food and fast-moving consumer goods, where e.g. clothing has increased with six percent. Nonetheless, retail stands out in July 2016, as the vacancy level has

In July, the national economic vacancy is 9.4 percent corresponding to a decrease of 0.2 percentage points compared to April and 0.5 percentage points compared to last year. The positive development is limited by the fact that vacancy for office of 12.7 percent has been almost permanent during the latest quarters and still is considered to be above the long-term level, cf. figure 1. In addition, there is a small increase in the vacancy for retail implying an average increase of 0.2 percentage points every quarter since October 2015. The decrease in the total economic vacancy compared to last quarter is mainly due to a decrease in residential and to some extent industry. The economic vacancy for residential continues to decrease throughout 2016 with 0.3 percentage points in July which is why the low level from July 2015 of 2.6 percent is almost maintained.

Table 1. Vacancy rates in July 2016

Economic vacancy rate Vacancy (percent)

Quarterly change (percentage points)

Annual change (percentage points)

0.1

0.4

Spatial vacancy rate Vacancy (percent)

Quarterly change (percentage points)

Annual change (percentage points)

-0.2

0.6

Office

12.7

Retail

8.6

0.3

0.2

8.2

0.4

0.2

Industry

12.4

-0.9

-1.8

12.5

-1.1

-3.1

Residential

2.8

-0.3

0.1

2.6

-0.2

0.1

Total

9.4

-0.2

-0.5

10.1

-0.5

-1.2

14.4

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


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