THE PROPERTY PERSPECTIVE Denmark 2017

Chapter name 1 THE PROPERTY PERSPECTIVE Denmark 2017

CBRE Research

The Property Perspective Denmark 2017 Contents 3

INVESTOR 25 PERSPECTIVE Investors need to embrace the evolution and the level of change

NEW HUBS, NEW DEVELOPMENT POSSIBILITIES Zealand, the Triangle 24 Region and Jutland

06CONECONOMY All indicators are pointing towards an upswing in Danish economy

MAIN TRANSPORT 08 CORRIDORS AND TRANSPORT OF GOODS The Fehmarnbelt tunnel will wbecome a major link between Scandinavia and Central Europe TENTS 12DOMESTIC AND INTERNATIONAL TRADE 14DANISH INDUSTRIAL MAIN LOGISTICS AND 18 MARKET INDUSTRIAL CENTRE Transportation of national and international goods takes up a Gains popularity as Denmark covers a relatively small large part of the infrastructure international trade and retail geographical area. Therefore, most capacity are on the way up logistics companies only require two large-scale facilities in Denmark focused in these areas

Denmark in a Nordic setting transactions of the Nordics is on reforms already implemented, O V The countries constituting the estimated at ca. 15-20% throughout employment growth continues Nordics are considered the EU’s the last 5 years. but at a slower pace. Wages are fifth largest economy, Europe’s continuing to exhibit strong growth sixth largest economy and the Danish economy that will underpin consumer world’s 12th largest economy with All indicators are pointing spending going forward. a GDP representing 10% of the US towards an upswing in Danish economy and more than 50% of the economy. According to the Danish 2017 appears to be the year with a German economy. central bank, there are no major turn in interest rate levels. Long- imbalances in the economy to term government bond yields The Nordic countries represent prevent a continued stable recovery. are expected to remain low by a significant economic factor The global economic outlook historical standards but higher in the eurozone commercial has not changed since late 2016, than in recent years and trending property market and amount meaning that the basis for future up. After reaching almost zero-zone V I to approximately 10-20% of the economic growth in Denmark in Q3 2016, the long-term interest entire recorded European real remains favourable. Real GDP is rate was 0.66% in Q1 2017 and is estate market transactions. The expected to increase by 1.6% in expected to reach 0.83% at year- Danish share of the known market 2017 and 1.8% in 2018-2019. Based end.

Figure 1: Danish GDP and employment growth, q-o-q

E E • GDP • Employment R W Source: Oxford Economics, 2017

Main economic indicators

AVG. 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2012-2016

GDP growth 1.1% 0.2% 0.9% 1.7% 1.6% 1.1% 1.6% 1.8% 1.8% 1.9%

Employment growth 0.8% -0.8% 0.0% 0.7% 1.5% 2.7% 1.0% 0.6% 0.7% 0.5%

Unemployment rate 5.1% 6.1% 5.8% 5.0% 4.6% 4.2% 4.2% 4.2% 4.1% 4.1%

Inflation 0.9% 2.4% 0.8% 0.6% 0.5% 0.3% 1.1% 1.5% 1.7% 1.7%

DKK per USD 6.10 5.79 5.62 5.62 6.73 6.73 7.18 7.35 7.16 6.97

Govt. budget balance (% of GDP) -1.2% -3.5% -1.0% 1.4% -1.3% -1.4% -0.4% 0.0% 0.0% 0.0%

Long-term interest rate 10-year 1.1% 1.5% 1.8% 1.4% 0.7% 0.3% 0.8% 1.1% 1.4% 1.7%

Source: Oxford Economics

Inflation not have an inflationary target As a consequence of the Domestic demand to make a substantial contribution to countries. Starting from 2016, the Consumer prices are still but is committed to a currency commitment to a stable Private consumption is supported by Danish economic growth. Towards corporate tax is at 22% compared showing a weak trend. Long- target against the Euro. currency, the Danish central low interest rates, steadily rising real the end of 2016, exports of both to 23.5% in 2015. This should term inflation ran at an average bank follows the European disposable income and increasing services and goods picked up, and lead to further improvement in annual rate of 1.6% in the Stable currency and credit Central Bank closely regarding wealth and home equity. Going the same is expected to continue in profitability and incentives to invest period 2007-2016 and was rating the leading interest rates. forward, real disposable income is 2017. Due to the size of the Danish over the medium term. Economic relatively high in 2010-2012. Denmark is a member of the expected to grow at a slightly lower merchant fleet, sea freight is an growth should also improve by An inflationary pressure easing EU but does not participate As one of few countries, rate than in the past few years. This is important export component. major investments in public was seen first in 2013. In 2017, in the EMU. The Danish Denmark has a triple-A (AAA) a result of price growth normalisation transport infrastructure, notably the inflation is expected to increase currency (DKK) is pegged to credit rating with all major and upward movement of interest Lower corporate tax and Fehmarnbelt tunnel that will link to around 1.1% and 1.5% in the Euro in a narrow band of rating agencies (Standard & rates. improved infrastructure Denmark to Northern Germany. 2018. From 2019 onwards, it is +/- 2.25%. The stability of the Poor’s, Moody’s and Fitch The Danish government has estimated to stabilise at 1.7%. DKK vs. EUR is a cornerstone Group). Exports lowered the corporate tax rate to The Danish central bank does in Danish economic policy. Looking ahead, exports are expected levels comparable to neighbouring

Figure 2: Figure 3: Industrial Exchange rates production and turnover, (2010=100) • ¤/DKK • $/DKK • Industrial prd. w/o pharma • £/DKK • Industrial

Source: Statistics Denmark, 2017 Source: Statistics Denmark, 2017

© 2017 CBRE Research The Property Perspective Denmark 2017 Transport 9 MAIN TRANSPORT CORRIDORS AND TRANSPORT OF When the Fehmarnbelt fixed link opens, Danish and German transport networks will become further integrated, and the GOODS corridor will become a major link between Scandinavia and Central Europe

There are more than 400 named goods as the current 160 km detour main corridor runs through Jutland islands in Denmark. The largest via the Danish-German border in from the Danish-German border are Funen and Zealand, where Jutland can be avoided. in the south to the northern part Copenhagen is situated. There of Jutland, where it links up with are several bridges connecting the A large proportion of the flow ferry connections to Sweden and various islands with the Danish of goods via Funen and Jutland Norway. A second north-south mainland. These bridges are to Germany is expected to be corridor connects the eastern part of essential to an integrated Danish substituted by the more direct Denmark (Zealand) to neighbouring transport system. Besides, they link corridors available with the countries. From Elsinore in the Scandinavia to Central Europe. With new Fehmarnbelt connection to north and the Øresund Bridge few exceptions, Danish roads and Germany. This will reduce the near Copenhagen, it runs through bridges are free of charge for the amount of traffic on the Storebælt the eastern part of Denmark to individual user. Bridge and thereby ease capacity the south, where ferry connections constraints. across the Fehmarnbelt connect In 2027, a fixed link across the the Danish transport system to Fehmarnbelt, between Denmark Efficient transport corridors are Germany. and Germany, should open up essential to a modern transport for traffic. Construction works are system. Besides facilitating the When the Fehmarnbelt fixed expected to start in January 2018 mobility of goods and passengers link opens, Danish and German and will take 8½ years. The fixed across borders, they also link the transport networks will become link will significantly reduce the domestic network together. The further integrated, and the corridor travel time between Scandinavia main transport corridors in Denmark will become a major link between and Central Europe. It will improve connect Denmark to its European Scandinavia and Central Europe. the market conditions for railway neighbours along two north-south transport and for the transport of axes as well as a west-east axis. A

HIRTSHALS PORTS AND AIRPORTS

Denmark has some 120 commercial ports in Denmark, Second-line warehouses and FREDERIKSHAVN commercial seaports, including in terms of freight turnover, are other logistics next to existing RØNNE a lot of very small local ports. the port of Aarhus (8,038 tonnes first-line (airside) cargo area and Three ports are of a size to be in 2016), the port of Fredericia main gate to the airport should appointed to the core network (7,728 tonnes in 2016) and the be developed. of the EU’s Trans-European port of Copenhagen (7,636 Transport Network (TEN-T), tonnes in 2016). Copenhagen Airport has namely the ports in Aarhus, announced that it will invest Copenhagen and Frederikshavn. Airports - cargo some DKK 20 billion in new AALBORG Twenty other ports are There are two cargo terminals infrastructure and airport appointed to the comprehensive at Copenhagen Airport: Spirit extension. This would allow for network of the TEN-T. Air Cargo Handling Denmark an increase in passenger traffic and Worldwide Flight Services to 40 million a year from 29 The Danish seaports are Denmark A/S. There are only million in 2016. THYBORØN essential gates to international first-line warehouses. The new transport to and from Denmark, Airport Business Park is situated and around two thirds of all in a greenfield site covering RANDERS Danish exports pass through more than 300,000 sq m. the seaports. The three largest GRENAA

KARUP AARHUS Figure 4: Share of tonnes of goods transported in international transport ELSINORE (2015) STÅLVALSEVÆRKET • Ships • Foreign lorries • Danish lorries BILLUND • Aeroplanes • Trains VEJLE KALUNDBORG COPENHAGEN

Source: Statistics Denmark, 2017 FREDERICIA ASNÆSVÆRKET KØGE ESBJERG

KOLDING Figure 5: Share of tonnes ODENSE of goods transported in national transport (2015) STIGSNÆS

• Danish lorries • Ships AABENRAA • Foreign lorries • Trains • Aeroplanes SØNDERBORG Source: Statistics Denmark, 2017

RØDBY GEDSER

Figure 6: Danish goods transport (million tonnes per km) DOMESTIC AND • National transport • International transport, total • All types of transport INTERNATIONAL Source: Statistics Denmark, 2017 TRADE

Denmark is a trading nation. Thus, the transportation of national and % international goods takes up a large part of the infrastructure capacity. Viewed over a large number of years, external trade has increased considerably, and 47 today it makes up a far greater share of value added than was previously the GDP, import, 2015 case. (was 38% in 2000)

The sum of Denmark’s of the Danish production, % imports and exports almost whereas the consumers matches the total GDP. are spread throughout the 53 Shares of GDP, imports country. A well-functioning GDP, export, 2015 and exports increased transport system is a central (was 45% in 2000) from making up 38% and competitive parameter for 45% respectively in 2000 Denmark and an important to 47% and 53% in 2015. factor when companies The development was choose a location. particularly strong during the economic boom from Solid international 2004 to 2007. The import ‘gateways’ are vital for and export shares of GDP Denmark’s competitiveness peeked in 2008 with 50% in that Denmark is a transit and 54% respectively, and country, linking Scandinavia since then there has been a and Central Europe. This minor decrease. brings opportunities – and challenges. Denmark can An efficient transport and become a logistics centre logistics system is needed as opposed to a ‘lay-by’ for the products to get on the way to the final from the manufacturers destination. to the industry and the consumers. In Denmark, the Jutland region accounts for a large share

In a historical context, the Danish industrial and logistics market has always been highly regarded as an owner-occupier playground. Owning property was part of many companies’ strategic planning – similar companies clustered in centres of various sizes with good links to the motorway network. As the occupier profile evolves and becomes more international, a shift towards leasing instead of owning is gradually taking place.

From the investor perspective, The nature of occupier demand The support of logistics is the Danish industrial and is evidently evolving, thus clearly indispensable for logistics market gains impacting the industrial and B2C business to grow. With popularity as international logistics property market. online sales at 27% of the total trade and retail consumption Two opposite trends are to be retail sales in Denmark, the are on the way up. Being a observed. (r)evolution of demand for gateway to the other Nordic logistics is yet to be expected. countries and benefitting from On the one hand, structural Having in mind that logistics highly developed transportation changes in the retail supply costs account for 30-50% of infrastructure, Denmark chain, the much wanted the total e-commerce retail certainly adds up to the flexibility in warehouse costs, it is understandable why attractiveness of its industrial deployment and focus on retailers and logistics providers and logistics assets. economising will push are considering logistics as third-party logistics service ‘the enterprises’ gold mine’. E-commerce is a global providers (3PLs) and large Rising expenses will continue phenomenon, but real (online) retailers towards to be a strong stimulus for estate is local large-scale facilities. The trend both mergers and acquisitions, During the last five years, of XXL warehouses is often consolidations and new business-to-consumer (B2C) accompanied by a geographical development. E-commerce is a global phenomenon sales in Denmark have been shift as large-scale plots of growing at an annual rate of land are not available, or too According to Ecommerce but real estate is local about 17% and have, according expensive, in the traditional Foundation, another fast to FDIH, reached EUR 13.6 hubs. growing trend in the Northern billion (DKK 101 billion) in European countries is the 2016. This represents a 16% On the other hand, final-mile growing popularity of having growth y-o-y. Costs of logistics facilities, where focus is set on groceries delivered at home. operations have also increased small-scale deliveries, are on the – pushing retailers and logistics rise. This results in a need for providers (3PLs) to economise smaller parcel hubs close to the and stimulating simultaneously final customer. to mergers and acquisitions.

Figure 7: Danish business-to- Figure 8: Industrial consumer transaction volume, e-commerce Nordics turnover • Denmark • E-commerce • Finland (EUR million) • Norway • Average transaction • Sweden value (EUR)

Source: CBRE Research, 2017 Source: FDIH, 2017

CBRE Research The Property Perspective Denmark 2017 Danish Industrial Market 17

The Danish industrial and logistics market is set to grow

Fresh the level of changes in place. A thorough certainly facilitates decision-making for goods could logistics system is the very life strength income-oriented investors willing to invest therefore be of e-commerce – logistics are therefore in Denmark. the next big a key factor in determining e-commerce thing in Danish effectiveness. Placing money into specialised logistics e-commerce, facilities is not a pure Danish trend but can meaning Investment drivers lead to a gap between demand and supply that logistics The industrial and logistics investment of investment properties. Partly as a result companies will turnover has been on the rise in EMEA as a of this trend, the Danish prime industrial have to start whole, landing at EUR 24.4 billion in 2016 yields have contracted from 7.00% in 2014 working on cost- (EUR 467 million in Denmark). The Nordic to 5.50% as at Q1 2017. efficient solutions industrial investment volume has reached soon. Major 3PLs in EUR 4.0 billion in 2016, which represents The Danish industrial and logistics Europe are already a 27% growth y-o-y. With EUR 467 million market is set to grow. The changes in testing options for recorded in 2016, the volume invested into size requirements lead to a scarcity of delivery using normal Danish industrial and logistics properties suitable accommodation in the most trucks/vans and cooled shows a 30% growth compared to 2015. desired locations and are stimulating new vehicles. development. Besides, occupier’s focus on From the investor perspective, Danish efficiency and rationalisation has proven Clearly, if the investors industrial and logistics properties are to be an even stronger stimulus. Energy want to profit from the clearly benefitting from the high income efficiency benefits and lower operational changes that the industrial return component. This combined with costs are highly valued variables for logistics and logistics market is facing, the growing occupier demand, low-risk operators. they need to understand and economy, attractive financing opportunities embrace both the evolution and and expected increase in international trade

Figure 9: Danish prime industrial yields

Source: CBRE Research, 2017

CENTRE AALBORG AALBORG

JUTLAND

• Taulov near Fredericia

• Brabrand near Aarhus (has outlined a plan to be the largest transport and logistics centre in Denmark) HERNING AARHUS

• DTC – Dansk HERNING Transport Center near Vejle (established and still expanding) HORSENS

• Kolding North COPENHAGEN BILLUND VEJLE ESBJERG GREVE ROSKILDE • Horsens south of Aarhus is well FREDERICIA developed ESBJERG KOLDING KØGE ODENSE

SØNDERBORG

ZEALAND

Most attractive industrial and logistics cities in Zealand • Copenhagen Airport

• Skandinavisk Transport Center near Køge (development)

• Høje-Taastrup TransportCenter (development) ALLERØD

• Greve – Greve Main and Ventrupparken/Ventrupvej (the latter is development) COPENHAGEN HØJE TAASTRUP

ROSKILDE • Kastrup GREVE HEDEHUSENE KASTRUP

KØGE RINGSTED

SLAGELSE

Denmark covers a relatively small The rental levels for industrial properties The Triangle Region geographical area. Logistics companies with in Denmark are indicated in DKK/sq The Triangle Region consists of the area storage facilities on Zealand (Copenhagen m/p.a. The rents in Kolding and Vejle are between Kolding, Vejle and Fredericia. as the main city) and in the Jutlandic considered comparable to Aarhus due From a logistics point of view, the region Triangle Region can reach customers across to the central position in the Triangle has an important role in Denmark as all the country within a few hours. Therefore, Region, which is slightly below the levels major cities are accessible within 2.5 hours, most logistics companies only require two for the Capital Region. Property prices in while the border to Germany can be reached large-scale facilities in Denmark focused in this sector are improving, and it is evident in approximately one hour. Rental levels these areas. that the market has gained momentum for logistics properties in the Triangle throughout 2015 and 2016. Region would be approximately DKK 325 On Zealand, the area south-west of per sq m, but it is highly dependent on the Copenhagen, stretching from Køge to Airport and Taarnby specifications for the individual property. Høje Taastrup/Hvidovre, is among the The stock of industrial and logistics For a new logistics property in a prime most attractive locations for logistics. buildings in Tårnby Municipality (airport location, the rental level is closer to DKK The area has outstanding infrastructure, location) is around 0.9 million sq m. 475-525 sq m. including easy access to the motorway (E20/ Copenhagen Airport bought, in connection Germany is within a short distance and will become even more E55, 21 and O4), ensuring swift passage with the bridge to Sweden, more than to Copenhagen, the rest of Zealand, 400,000 sq m of reclaimed land along Copenhagen Airport, and the Øresund the coast of Oresund. The area is accessible with the completion of the Fehmarnbelt connection, Bridge to Sweden. In addition, Germany Copenhagen Airport’s largest development is within a short distance and will become area with possibilities to construct even more accessible with the completion offices, warehouses, distribution, and shortening the travel time to Central Europe from Scandinavia of the Fehmarnbelt connection, shortening manufacturing facilities. the travel time to Central Europe from Scandinavia. The area close to the airport is a preferred location for logistics and service-related In general, the Copenhagen-Malmoe area businesses focusing on cargo handling. The is one of the most important industrial/ airport has experienced a high passenger logistics locations in the Scandinavian growth rate with passenger numbers just market. Traditional industry is gradually above 29 million in 2016 and has plans for being converted and replaced by further expansion to 40 million in 2030. distribution facilities. This is especially relevant in the area from Køge to Høje Greater Copenhagen Taastrup. Conversion of outdated The region around Høje Taastrup/Hvidovre, industrial premises is often not sufficient Greve and Køge is considered attractive to meet requirements of today’s logistics for logistics companies due to its more companies. Traditional and older facilities spacious building opportunities compared benefitting from attractive locations to areas closer to Copenhagen. Moreover, are therefore frequently purchased for it is closer to Funen and Jutland as well as demolition, giving way to modern facilities. ferry connections and the planned tunnel to Køge, Høje Taastrup and Hvidovre have in Germany via the Fehmarnbelt. recent years benefitted from a profound involvement from the local municipalities It is an industrial area which has a high in development of sites with specific density of logistics companies. The appeal to logistics companies. Many of the properties take advantage of the excellent sites in the district have been developed connections via the motorways E20 and in recent years, and the respective local E47, which are accessible within 3 km, plans already cater for today’s demands as well as benefit from visibility from the and requirements in terms of modern motorways. commercial constructions. This is contrary to the more dated commercial districts Asking rent starts at DKK 550 per sq m for closer to Copenhagen, where tall buildings industrial and logistics facilities. That said, were not allowed and there are more severe the rental level is dependent on the specific traffic restrictions, including restrictions on microsite and the fitting of the property. night-time deliveries.

NEW HUBS

Attractive mortgage financing and a rising economy make the current Danish real estate NEW DEVELOPMENT market an attractive investment opportunity. Investors who are seeking both cashflow and capital gains can exploit the current yield gap. Low interest rates and rising investor focus for Danish properties have already pushed down the yield on properties – mainly in Copenhagen, where capital value growth will only appear if the investor develops owned POSSIBILITIES assets. In other geographies around the country, capital value growth is expected when the economic cycle turns noticeably.

The Danish property market has occupier demand for this type Another important industrial and experienced strong development of properties is soft. Despite logistics location is the Triangle in recent years. Both cross-border difficulties, the evidence of Region between Kolding, Vejle and and domestic investors showed greater risk tolerance and stronger Fredericia, where yields for prime significant activity in the past appetite for secondary assets can products are around 6.25%-6.50%. On Zealand, the area south-west of the logistics hub supporting 3PLs serving transportation needs. Construction works couple of years. This helps to be attributed to a combination of Copenhagen, stretching from Køge to e-commerce retailers. Taulov is also the are expected to start in late 2017/early 2018. increase transparency and liquidity factors. Firstly, investors are likely Going forward, we expect a further Høje-Taastrup, is among the most attractive location of the new freight terminal of Blue First companies are expected to move to in the Danish property market to view secondary products more appreciation of Danish logistics locations for logistics providers as it offers Water Shipping. GDC in H2 2018. on the long term. We now see positively as economic recovery properties. An important factor for more spacious building opportunities that some of the foreign investors brings general improvement to the institutional capital willing to compared to locations closer to Close to Aarhus, the Brabrand / Aarslev In Hedehusene, on a 600,000 sq m large start to exit their investments in occupational markets. invest in European logistics real Copenhagen. DSV, located in Hedehusene, area has outlined a plan to be the largest plot, some 180,000 sqm of warehouse and Denmark - and other new foreign estate is transaction size – with the has after only one year expanded its logistics transportation and logistics centre in logistics facilities could potentially be investors are potential buyers. Secondly, core prime market volume preferably sitting between facilities with additional 10,000 sq m. Denmark. developed. segments are becoming more EUR 75 million and EUR 150 Large logistics facilities with long competitive and expensive, million. In Denmark, this volume is The Triangle Region has an important role In Greve, a new local plan will allow the leases, multi-let industrial units, prompting investors to target a hardly achievable in a single-asset in Denmark due to its favorable location. construction of Greve Distribution Center where the risk can be spread, and wider range of opportunities in transaction. A growing demand for Taulov will be the location of the future (GDC) - 100,000 sq m of buildings for portfolios of well-let industrial their search for value. portfolios is thus to be expected. DMTC logistics centre. There are plans logistics, warehousing, distribution, and properties are increasingly in to invest heavily in the development of production companies with substantial demand. Yields for the best logistics facilities in Copenhagen, with solid tenants It is more difficult to predict on long-term contracts, are the investors’ interest in more currently in the range 5.50-5.75%. secondary products as long as

CONCLUSION

In line with private consumption being one of the major drivers of the Danish economy, retail logistics operators will continue to fuel industrial occupier demand. As e-commerce grows rapidly in Denmark, logistics operators will be a crucial link in facilitating these growing operations.

As the e-commerce volumes are rising, so are the returns. The retailers have two options: to handle the returns themselves or to outsource to a third-party logistics company (3PL). Both paths present a significant growth opportunity for the Danish and Nordic logistics market.

In case the company decides to handle returns itself, it has to expand its logistics footprint. That could happen through either the extension of the current space or by creating a separate reverse supply chain network.

The second option is to hire a third party logistics (3PL) company. This has become the preferred choice of many retailers as 3PLs employ prime logistics systems and are benefitting from excellent locations. 3PLs have subsequently become, and are expected to continue being, one of the major drivers of the industrial real estate demand.

Taking into account the forecasted growth of the Danish e-commerce, 3PL companies will certainly have solid ground to support their expansion in the years to come.

KEY CONTACTS

RESEARCH VALUATION DRAGANA MARINA CHRISTOPHER BAILEY T +45 3525 5142 T +45 3544 0927 E [email protected] E [email protected]

PER WEINREICH INDUSTRIAL & LOGISTICS T +45 3544 0914 NINNA THERKELSEN E [email protected] T +45 3124 8589 E [email protected] AARHUS THOMAS GOTTLIEB ANDERS ROM T +45 3119 2826 T +45 8730 8434 E [email protected] E [email protected]

THOMAS PETERSEN T +45 3125 3396 E [email protected]

CAPITAL MARKETS DANIEL MARTHENDAL T +45 3544 0009 E [email protected]

PETER MICHAEL TETZLAFF T +45 3162 1262 E [email protected]

https://www.linkedin.com/company/cbre-denmark

To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at www.cbre.com/research- gateway

This report was prepared by CBRE Denmark, which forms part of CBRE Research—a network of preeminent researchers who collaborate to provide real estate market research and econometric forecasting to real estate investors and occupiers around the globe. All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorised publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by © 2017 Market specific copyright