Offices in Madrid: vacant space down and rents up

Offices in Madrid: vacant space down and rents up

Office stock in the capital came to 12,854.146 m2 in 2016. Development was concentrated principally on building renovation (with a total area of 96,249 m2 renovated), and new stock totalling only 16,251 m2. As regards market behaviour, there was a gross take up of 496,108m2 in 561 transactions, 78% of these for areas below 1,000 m2.

The Aguirre Newman report also points out that the general rate of availability in the Madrid market has gone slightly down, to 11.4%, which represents in absolute values that the area of unoccupied property has gone down by 32,977 m2 in 2016. Meanwhile, rents in general have gone up in every zone, an annual global average rise of 6.9%. The average rent in the Central Business District (CBD) and the Prime zone has risen to 27.89 €/m2/month.

The prediction for 2017 is that there will be a take up in the Madrid office market of 81.900 m2 and in 2018 more than 157.750 m2. Aguirre Newman considers that the take up of office space on 2017 will be 540.000 m2, levels of availability will continue to readjust, and rents will be very similar to that of 2016.

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