EDC Poul Erik Bech and other leading Danish commercial real estate advisors launch new industry data collaboration

Several leading commercial real estate brokers have just announced an end to different calculations and estimates of transaction volumes in the market for commercial and investment properties in Denmark. Behind the collaboration are EDC Erhverv Poul Erik Bech, CBRE, Colliers, Engel & Völkers, Newsec, Nordicals and Savills, who have been working to introduce a coordinated approach to calculating transaction volumes.

Poul Erik Bech says: “We are very pleased that we can stand together in the commercial real estate industry on a new collaboration on industry data and transaction volumes. It is important that we have transparency in the industry so that investors, business partners and the press get as fair and consistent a picture as possible across the industry.”

“Different platforms and actors in the commercial real estate market have historically reported different transaction volumes. This has been done with a lack of guidelines on what the volume actually consists of. This means that those with the fastest announcements or highest volumes have historically been given a lot of talking time on a data basis that, in the worst case scenario, may have misled investors.”

“We are therefore very pleased with the new industry initiative and collaboration on industry data on transaction volumes. This is comparable to when we also advocated the creation of Ejendomstorvet almost 25 years ago. Today, it is the country’s largest portal for commercial premises and commercial real estate, where all cases from the country’s commercial real estate agents are displayed. It’s an example of how the entire industry and customers benefit when we work together.”

Aligned data method
For instance, the participating advisors have now agreed on what property types are to be included in the calculations to achieve the most accurate presentation of activity in the investment property market. Joseph Alberti, Head of Research, EDC Erhverv Poul Erik Bech, says:

“The new collaboration on transaction volume helps to strengthen us all in terms of enhancing knowledge and data in the industry. We have agreed on what the transaction volume should contain in the future and, not least, what should not be included in the calculations.”

“For example, we have agreed to exclude internal transactions, assets from agriculture, wastewater facility and windmills. The calculations are therefore characterized by including transactions directly from the advisors involved, as we have the best prerequisites for validating the quality and justification of the transactions in relation to being included in the calculations.”

Quality stamp indicates industry data
To clearly indicate when analyses of transaction volumes in Denmark are based on coordinated industry data, future announcements by the participating advisors will carry a quality stamp.

The cooperation is limited to the fact that the method of entering and using the data is standardized, and therefore there is no limit to the number of professional business brokers who can sign up. In addition, the monthly, quarterly, and annual transaction volumes will be distributed centrally and widely as press releases. Subscribing actors are free to analyze and communicate based on the coordinated data.