The office rental market in Malaga in the second half of the year reached a volume of hiring higher than that of 2019. In the first nine months of the year, the area hired in the city reached 17,652 sqm, above the 12,270 sqm registered in 2019, according to the report released yesterday by CBRE.
"The lack of promotion of office buildings in recent years, together with the interest that Malaga is generating, especially from technology companies, means that the availability of space is very low, mainly in the most central areas of the city, being the preferred financial center for companies ", comments Pelayo Fernández, associate director of the CBRE Málaga office department.
According to the study, Malaga has a total stock of office space of almost 600,000 sqm, with two-thirds concentrated in the PTA (392,733 sqm). The stock in the center reaches 72,392 sqm. With regard to availability, this is around 4.5% for the city as a whole, being less than 2% both in the downtown area and in the CBD.
On the other hand, the percentage of companies that demand larger surfaces has grown, standing at 37%, compared to 2019 when only 10% of the demands were for surfaces greater than 1,000 sqm. Regarding the profile of demanding companies, those in the tech sector are the most active, accounting for 80% of the demand.
The center continues to position itself as the area with the highest rents in the city, reaching the prime income of 19€/ sqm/month, while the average rent in this area is around 17€/sqm/month . It is followed by the CBD, with a maximum rent of 17€/sqm/month and an average rent of around 14€/sqm /month. Periferia and PTA are positioned as the lowest rents, although in the latter they are reaching 12€/sqm/ month in the most prime buildings.
On the investment side, in recent years Malaga has generated great interest among international funds, as evidenced by the transactions of the Malaga Business Park and Alei Center buildings in the PTA, and Eurocomsur and Aries in the CBD, reaching higher returns attractive than in markets such as Madrid and Barcelona, according to CBRE. The investment volume transacted between 2019 and 2021 reaches 83 million euros.
"This boom has caused new investors to want to enter the city, either through the promotion of new buildings or the purchase of existing buildings. Factors such as demand exceeding supply, stable rents with growth potential and multinational companies with large projects in Malaga explain this interest on the part of investors ", explains Rosa Madrid, Andalusia CBRE Spain director.