Every quarter we publish Colliers PULS, a report in Danish, which is a tool that specify a range for the expected yield requirements and market rent for a number of sub-areas and property types. The geographical areas include most major cities in Denmark such as Copenhagen, Aarhus, Odense, Aalborg, Vejle, Kolding, Randers, Svendborg, Frederikshavn and others. The largest of these is further divided into several areas. Property types include office, retail, industrial and logistics and residential properties.
Colliers PULS is useful for commercial rental as the key figures for the market price indicate benchmark for the individual segments and areas. The specified levels are based on Colliers International Danmark’s broad market knowledge and are based on actual transactions concluded, signed leases and in-depth dialogues with stakeholders in the market.
Market rent is defined as the rent a qualified willing tenant and a qualified willing landlord are prepared to contract for the lease at the time of the valuation, taking into account the location, size, use, flexibility, quality, equipment and maintenance among others. The specified market rent is stated in DKK per sqm. per year and is excluding operating expenses. The market rent is based on normal and market consistent operating expenses in that area.
The required yield is defined as the first year’s yield, corresponding to the gross rent minus operation expenses relative to the cash purchase price for the property. It is assumed that the property is let out on market conforming terms and is without vacancy.
Download this quarter's Colliers PULS here.
Also see our other collection of english reports here