July 2019
The Danish Property Federation’s market statistics – vacancy • An overall vacancy of 6.5bn • The vacancy of 6.7 percent has increased slightly in the last three quarters. • The largest shopping centres (9.0) and Strøget (10.9) has a larger vacancy than retail in general (6.5) • The vacancy in residential is still low (4.1), but it has increased 0.4 percentage points since last quarter • A success story from industry with a quarterly decrease in vacancy of 0.1 percentage points
Slightly increasing vacancy The economic vacancy rate increases with 0.2 percentage points to 6.7 percent. The overall vacancy rate is slowly heading in the wrong direction and has increased slightly in the last three months. An economic vacancy rate of 6.7 percent corresponds to lost rental income of 6.5bn per year. In good times. it could be reduced with around DKK 4bn but the other way around. bad times could mean an extra DKK 4bn in extra vacancy. As office is the largest sector and has a higher vacancy. it means that office overall has almost half of the DK 6.5bn. Since last quarter. the vacancy for office has not increased but it is the increasing vacancy in retail and residential which causes the increasing vacancy. Retail and residential has relatively low levels with economic vacancy of 6.5 percent for retail and 4.1 percent for residential. The vacancy for industry and other commercial is decreasing. Higher vacancy in larger shopping centres and on Strøget The retail vacancy of 6.5 percent is still below the average from 2000-2019. which is 6.8 percent. The vacancy for retail increases for the second quarter in a row. The larger shop-
Figure 1. Economic vacancy, July 2019
The retail vacancy peaked in 2013 with 14.0 percent.
Economic vacancy
9.8
The economic vacancy rate indicates how much of the rent is lost as a consequence of empty leases.
6.7
8.6 5.8 6.5
Compared to the same period last year, the vacancy has decreased 0.5 percentage points.
4.1
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.
0.0
-0.8
0.5
0.4
-0.1
-0.5
0.4
-0.1
-0.2
-2.1
0.2
-0.5
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