Friday, 13 November 2026
Denmark’s office investment market continued to recover during the first nine months of 2026, although investors remain selective about property quality, location and rental security. According to CBRE’s latest market research, investment activity has improved from the subdued levels recorded in previous periods, with demand concentrated on well-let office buildings in established commercial districts.
Total office investment volume reached approximately DKK 5.2 billion between January and September 2026, across 157 transactions valued at more than DKK 5 million. The report’s headline figures indicate annual investment growth of 15%, while its accompanying commentary refers to an 18% increase. Although the two figures differ, both point to a recovery in transaction activity compared with the corresponding period of 2025.
Despite the improvement, office properties accounted for only 9% of Denmark’s total commercial real estate investment volume during the period. The relatively limited share suggests that investors continue to approach the sector cautiously, particularly where buildings face uncertain leasing prospects, refurbishment requirements or higher financing costs.
Greater Copenhagen remained the dominant investment destination, accounting for 69% of national office transaction volume. Other locations outside Copenhagen and Aarhus represented 28%, while Aarhus accounted for just 3%. The geographical concentration reflects the importance investors place on established business districts, transport connections and access to occupiers seeking modern accommodation.
Prime office yields remained broadly stable at approximately 4.25% during the third quarter. Secondary properties, by comparison, were associated with yields of around 6.30%, demonstrating the considerable difference in pricing between the two segments. The spread indicates that investors are demanding higher returns to compensate for the greater leasing and capital expenditure risks associated with less competitive buildings.
CBRE also identifies financing conditions as a potential constraint on further market recovery. Elevated borrowing costs, swap rates and government bond yields could place upward pressure on property yields during the final quarter of 2026. Such a development would affect acquisition pricing, particularly for buildings where rental income growth is insufficient to offset higher financing expenses.
Among the largest transactions completed during the third quarter was PensionDanmark’s acquisition of Absalons Gård in Copenhagen from Savills Investment Management. The transaction was identified as the quarter’s largest office deal, with the report indicating a value of approximately DKK 500 million. Another notable transaction involved the sale of the office property at Niels Juels Gade 7 to developer Gefion Group.
While investment demand remains concentrated on established assets, the occupier market is also showing a preference for better-quality offices. CBRE reports that companies are increasingly prioritising buildings that provide modern working environments, convenient locations and facilities designed to support collaboration and employee retention.
According to the company’s Nordic Office Occupier Sentiment Survey 2026, 87% of surveyed occupiers favour central business district locations or areas immediately surrounding them. This preference is increasing competition for modern office accommodation in Copenhagen’s most established commercial areas and supporting rental expectations for prime buildings.
The survey also highlights the continuing importance of workplace experience. Some 89% of respondents identified collaboration with colleagues as a principal reason for attending the office, while 81% emphasised access to a productive working environment. Although employers increasingly expect staff to attend the workplace at least three days per week, only 51% of surveyed organisations reported achieving that attendance level.
Building facilities have consequently become an important factor in leasing decisions. Approximately 82% of occupiers regarded amenities as a decisive consideration when selecting office accommodation, although only around half indicated a willingness to pay additional rent for them. This creates a challenge for landlords seeking to recover investment in upgraded buildings through higher rental income.
In Copenhagen’s office occupier market, the prime headline rent remained stable at DKK 2,500 per sq m, according to CBRE’s third-quarter figures. At the same time, the city’s office vacancy rate stood at 6.3% in the second quarter of 2026, compared with 5.2% during the corresponding quarter of 2025. The increase indicates that availability has risen across the broader market even as competition for the most desirable accommodation remains strong.
Development activity is continuing, with approximately 165,000 sq m of Copenhagen office space under construction during the third quarter. Around 28,000 sq m was completed during the quarter. Projects are distributed across several established and emerging office districts, including North Harbour, Østerbro, the Inner City, South Harbour, Tuborg Harbour and the Carlsberg City District.
The development pipeline contains both speculative projects and buildings with tenants secured before completion. This distinction is becoming increasingly important as developers and investors assess the financial risks associated with delivering new office space into a market where occupier requirements are changing.
The combination of rising overall vacancy and sustained demand for modern offices points to a market in which building characteristics are becoming more important than general supply levels. Properties offering suitable locations, contemporary specifications and attractive working environments may be better positioned to secure tenants, while older buildings could face greater pressure to modernise or adjust their rental expectations.
For investors, Denmark’s office market recovery remains closely linked to asset selection and financing conditions. Although transaction volumes have improved, the substantial yield difference between prime and secondary properties demonstrates that capital is not returning evenly across the sector. The ability to maintain occupancy, secure dependable rental income and manage future refurbishment costs is likely to remain central to investment decisions as the market enters the final quarter of 2026.
