JLL and EDC Erhverv Poul Erik Bech: The overlooked public investment market in a Nordic perspective

The Nordic property market for public institutions was on the agenda when EDC Erhverv Poul Erik Bech, together with one of the world’s largest estate agencies, Jones Lang LaSalle (JLL), and the City of Copenhagen, presented the latest ‘JLL Nordic Outlook’ report, which focuses on property investments for public institutions in the Nordics.

One of the world’s largest estate agencies, Jones Lang LaSalle (JLL), which generated revenue of more than DKK 123 billion in 2019 and has 92,000 employees in more than 80 countries, has just published the report ‘JLL Nordic Outlook – Autumn 2020’, which focuses on public institutions and the property market in the Nordics. EDC Erhverv Poul Erik Bech has contributed with the presentation of the Danish market in the report. In connection with the publication, a joint webinar was held in Copenhagen on 1 October 2020. Poul Erik Bech says:

“In the past six months, there has been much talk of crisis, with parallels being drawn to the most recent large-scale crisis – the financial crisis. It’s important for me to stress that such a comparison makes no sense. We do not have a crisis on the property market. On the contrary. Demand for both residential and commercial properties is strong, many transactions are being concluded, projects are being developed and there is an abundant supply of capital. In fact, there is so much capital out there that competition between Danish and international investors is quite fierce.”

“For us as estate agents dealing with commercial property, the biggest challenge is thus attracting and finding enough investment objects and projects. Much of the demand is for investments in residential properties, as most investors regard this market as a safe haven. Today, we have chosen to focus on a slightly overlooked market, the market for investments in properties let to public institutions, which we at EDC Poul Erik Bech also regard as a safe haven,” says Poul Erik Bech.

2020 on a par with 2019

Niclas Höglund, Head of Research, JLL Sweden is very pleased to be in Copenhagen to present JLL’s report on the development on the Nordic property market together with EDC Erhverv Poul Erik Bech:

“We had obviously hoped that COVID-19 would have been well and truly over by now, so that, together with EDC, we could invite a lot of customers to an after-hours event, but, hopefully, we can do so next time. Not surprisingly, the pandemic left its mark on the first half of 2020, but markets have stabilised somewhat in August and September. Transaction volumes year to date total DKK 86.3 billion in Sweden and DKK 33.7 billion in Denmark. We’re consequently well on our way to transaction volumes for 2020 getting up to 2019 levels, as Poul Erik Bech mentioned, so business is booming on the property market.”

“The theme of this edition of our ‘Nordic Outlook’ report is investment in public institutions. In these uncertain coronavirus times, public properties are characterised by even lower operating risks and securer rental income than the rest of the market. Especially in the other Nordic countries, we’re seeing a growing market for professional investors letting properties to public institutions. This is a rapidly growing market, and the question is thus when this development will really make itself felt here in Denmark.”

Increasing numbers of foreign investors

Helle Nielsen Ziersen, Partner and Head of International Relations in EDC Erhverv Poul Erik Bech, says: “We’re concluding an increasing number of transactions and providing more and more consultancy services in Denmark and abroad together with JLL. Therefore, we’re pleased to have been able jointly to highlight investments in public institutions in the Nordic region. We’re seeing a growing market for professional investors in rental properties for public institutions, although it’s still a slightly overlooked market in Denmark. But we expect that, over time, we will have an even larger public market more similar to those in our neighbouring Nordic countries, where it’s much more extensive.”

At the webinar held by EDC Erhverv and JLL, John Borrisholt, Regional Director for Zealand, explained how EDC Erhverv works with public and semi-public clients. In addition, Søren Tegen Pedersen, Director of Planning in the Finance Administration of the City of Copenhagen, gave an interesting presentation on the priorities of municipal authorities when choosing rental premises.

Read the report ‘JLL Nordic Outlook Autum’ Focus: Community Service properties in a Nordic perspective’