Taking into account that only 12% of the total surface area of the capital’s business park is new, and that it has been subject to renewal works since 2010, and despite the fact that the closing rents are higher in more modern buildings – almost six euros on average, reaching 8 europs in the prime zone and two euros on the periphery – the absorption of new or renovated office space is proceeding at a good pace, according to the consultant.
Ana Zavala, Director of Agencia Oficinas at Savills explains, “Although the number of projects is small compared to the majority of the market, this marks 33% of the total absorbed since 2014. The scarcity of space in the prime zone and the demand for quality point to the fact that in the following months the rise in prices we have seen in renovated buildings in the prime area will translate to Azca, Cuatro Torres and other zones of M-30.”
In new and renovated buildings, the rents are on average 12% higher than last year for this type of building, situated at about 24 euros/m2 within M-30 and 12 €/m2 outside the ring road. However, the average price of office rental in the capital moves at a different pace, reaching an average value above 15 €/m2 in the third trimester, and 14,70 €/m2 over the course of the year, which implies a 2% rise over the same period of last year considering the whole market.
At present, of the 1.4 million square metres of available office space in Madrid, only 15% is new or renovated.
Analysis by zones reveals that the concentration of renewal and change is found inside M-30, with 30% new and renovated projects as opposed to 10% on the periphery. Within the CBD, Azca and the Cuatro Torres show a concentration of 80% of the new and renovated surface area in the entire Madrid business district, “which makes both zones the starting point in the search for offices for any business looking for location, quality, efficiency and to take advantage of the market moment, with rents still low in comparison with the market peak. However, the search for quality is including ever more interesting options in the whole urban area”, Zavala concludes.