Monday, 24 August 2026
Denmark’s office investment market continued its gradual recovery during the second quarter of 2026, while competition for high-quality space in Copenhagen supported higher prime rents despite greater caution among occupiers, according to CBRE.
Office investment transactions reached DKK 3.4 billion during the first half of 2026, representing a 10% increase compared with the same period last year. However, CBRE said overall activity remains relatively subdued despite the improvement. Offices accounted for 11% of total Danish commercial real estate investment volume during the period.
A total of 96 office transactions above CBRE’s DKK 5 million threshold were recorded during H1, with the largest individual transaction valued at approximately DKK 0.5 billion. Copenhagen dominated activity, accounting for 73% of transaction volume, compared with 3% in Aarhus and 24% across other locations, according to the chart on page one of the report.
Prime office yields remained unchanged quarter-on-quarter at 4.25%. CBRE noted that Danish prime yields remain comparatively low against several larger European markets, including London at 4.00%, Paris at 4.35% and Amsterdam at 4.70%. The consultancy said this can make Danish offices relatively expensive for international investors able to obtain higher returns in larger and more liquid markets.
The largest office transaction during Q2 was BRF Fonden’s acquisition of Nørregade 7A. Another notable deal involved the office property at Kronprinsensgade 8, which was acquired by domestic investors.
Conditions in Copenhagen’s occupier market show a growing distinction between the best office properties and the wider market. CBRE identifies the continued move towards higher-quality buildings and locations as a dominant trend, with competition for prime space supporting stronger headline rents in Copenhagen.
Prime Copenhagen city office rents increased to DKK 2,500 per sqm, while the vacancy rate stood at 5.9% in Q1 2026, compared with 5.3% a year earlier. Approximately 18,000 sqm of office space was completed during Q2, while only 5,000 sqm was under construction during the quarter.
The development chart on page two shows a considerably larger overall pipeline when projects at different stages and locations are included, but it is heavily concentrated in a small number of Copenhagen submarkets. North Harbour has the largest combination of pre-let and speculative space, followed by Østerbro, Inner City and South Harbour. The chart also indicates that a significant proportion of space in North Harbour and Inner City remains speculative.
Occupiers nevertheless have greater negotiating power outside the most competitive locations. CBRE said increasing corporate caution and slower market activity are contributing to larger rental discounts, while lease negotiations are taking longer as companies scrutinise property costs more closely. Flexibility and cost control have consequently become more important factors in leasing decisions.
At the same time, increasing office attendance could provide additional support for demand. CBRE reports that employers across the Nordic region are expanding requirements for employees to spend time in the office and placing greater emphasis on physical collaboration. Higher workplace utilisation could strengthen demand for modern offices capable of supporting these working patterns.
The Q2 figures therefore point to an increasingly divided Copenhagen office market. Investment activity is recovering gradually, but transaction volumes remain below stronger historical levels, while the occupational market is becoming more selective.
Prime rents are rising as companies compete for better buildings and locations, even as overall vacancy has increased and occupiers gain greater negotiating leverage elsewhere. With limited immediate construction activity and demand increasingly concentrated on higher-quality workplaces, the performance gap between prime offices and less competitive stock could become an increasingly important feature of Copenhagen’s market through the remainder of 2026.
