Office take up in Madrid 15% down from 2015

Office take up in Madrid 15% down from 2015

In the last three months of the year, 116,900 m² of office space of the Madrid and its sphere of influence was occupied, thanks to the dealings of three large companies, Huawei, Renault and Amazon.

If total take up in 2016 is compared to that of 2015, it can be obeserved that in 2015 large scale take up, above 10,000 m², came to 127,800 m² in seven contracts. The lack of a greater number of transactions covering larger areas, together with other factors such as the smaller amount of space needed by a worker, the way that work has become more flexible with the so-called “flexitime" and the non-existent demand from the Madrid public sector, have resulted in a total take-up in 2016 falling short of beginning of year predictions, as well as being 15% less than the total take up of 2015  (482,950 m²).

Although take up has been less than last year, at BNP Paribas Real Estate they stress that from the beginning of 2016 there has been observed a greater capacity for organic growth in the Madrid office market thanks to the dynamism shown by firms located in the capital and their perspectives on increasing business, which could contribute to a solid take up even without large scale transactions.

Rents began to increse in the second half of 2013 and continued to rise evenly during the following years, Throughout 2016, the prime rent increased by 4% and average rents by 10% compared to 2015.

According to this consultancy, quality supply is much reduced, only approximately 5% of the available space is of a good qulaity, and given the favourable swing of the market, one can observe a boost in the renovation of office buildings , especially in the Azca district. During 2017 it is expected that the Spanish economy will continue to expand. Employment opportunities will also grow as will the take up of office space with the resulting reduction in the availability rate.

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