Development in industrial properties

Development in industrial properties

High investor demand, but rising vacancy

The logistics segment has seen continued strong investor demand in recent years, as highlighted by a transaction volume of DKK 6.5 billion year-to-date in 2024, accounting for 28% of total transaction volume.

Demand is primarily focused on newer, modern logistics properties located near essential infrastructure such as highways. Increased focus on supply chains is a contributing factor to the healthy activity, as demand among users for warehouse and logistics properties is rising.

High-ceilinged warehouses with good access and ramps are particularly sought after, meeting current needs. There is also growing interest in sustainable and energy-efficient properties, preferably certified.

However, the supply of the most sought-after properties has not kept pace, partly because industrial and logistics areas close to cities are increasingly being converted into residential areas. At the same time, it is becoming increasingly difficult to secure suitable land for logistics properties in prime locations, partly due to a lack of municipal willingness to designate land for warehouses and logistics properties.

The industrial segment has also experienced high demand in recent years, primarily driven by users rather than investors, although a larger portfolio of industrial properties has been traded in recent years.

The vacancy rate for industrial and logistics properties has risen sharply over the past year, with the national rate increasing by 67% to 2.9% in Q3 2024. Yield requirements are expected to remain stable in the coming year, as is the case for market rents.