Press release

CBRE expects the Fehmarnbelt Fixed Link to strengthen the Danish industrial and logistics sector

Denmark is located as a strategic link within the Scandinavian-Mediterranean Corridor and the STRING megaregion, connecting Scandinavia and Central Europe. According to a recent analysis by CBRE Denmark, the Fehmarnbelt Fixed Link, is expected to have a positive impact on demand for Danish logistics real estate, particularly along the Danish sector of the E47-motorway, including the South Corridor.

November 21, 2023

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Associated Contact

Marie Koefoed Agerskov

Communications Specialist

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The positive effects stem from an anticipated increase in international trade within the STRING megaregion, which connects Hamburg and Oslo vis Copenhagen, Malmö, and Gothenburg. Once operational, the fixed link is further expected to reroute cargo from existing ferry services between German Baltic Sea ports and Denmark and Sweden, due to the potential time savings and greater flexibility.

The increased market accessibility provided by the new link will be a key driver of international trade. The expected reductions in transport time and costs will increase imports and exports of goods in the STRING countries, thereby increasing economic activity and regional integration. Analyses show that especially Denmark will benefit from the major impact on freight flows to and from the Nordic Region.

Travel time between Scandinavia and Central Europe by road will be shortened by up to 60 minutes via the new connection,” says Morten Conradsen, Research Analyst at CBRE Denmark, “combined with the increased flexibility, this is expected to result in a significant growth in the amount of goods transported via the Fehmarnbelt towards 2040.”

An increase in the amount of goods transported via the Fehmarnbelt Fixed Link will make it more attractive for businesses to locate their logistics activities near the link. This could lead to an increased need for industrial and logistics real estate along the Danish section of E47, including in the existing logistics hub, the South Corridor.

Moreover, the Fehmarnbelt Fixed Link will contribute to a greener traffic corridor through Europe. The connection is expected to reduce both the total distance that goods need to be transported and CO2 emissions by promoting a transition to rail transport.

With an overall increase in international trade, the Triangle Region remains well positioned to capture some of the growing cargo volume that is expected to pass through Denmark. The region’s strategic location close to the E45- and E20-motorways, extensive industrial base, and presence of major logistics operators are considerable drivers of demand in the region. The region further benefits from a large catchment area of over 1.5 million people within an hour due to its proximity to Aarhus, Odense and the German border.

The Fehmarnbelt Fixed Link is an 18-kilometer-long tunnel being constructed between Denmark and Germany and is currently the largest infrastructure investment in Europe. The connection is expected to be completed in 2029.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at cbre.com