Office Leasing Market Denmark Q4 2023
In 2023 the Danish office market saw rather limited investment activity, due to a combination of the current market uncertainties (especially the interest rate hikes) and the fact that investors are globally becoming more cautious about investing in office properties amid concerns about a coming recession and an increasing share of remote work. Fortunately, we continued to see a strong tenant demand in large parts of the office occupier market in 2023, resulting in stable to slightly increasing rent levels and only slightly increasing vacancy rates. The prime yield level has increased from around 3.00% in Q1 2022 to 4.50% in Q4 2023.
Office Investment Denmark
Current market and economic uncertainties, driven by the continued high inflation and interest rate level, has resulted in a in a spread between the sellers and buyers price expectations, which has led to a significant slowdown in investment activity with extremely limited supply of safest assets – prime offices in Central Copenhagen.