Marketbeat Offices Madrid 2018

Ramiro Rodriguez, PhD

Research Professional PhD

Phone +34 917 819 208

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The full report

Take-up of office floorspace reached 128,380 sqm in this quarter, representing a quarterly change of -57%. For its part, aggregate take-up over the last 12 months has grown by 46.8% (589,883 sqm transacted between Q2 2017 - Q1 2018, compared with 401,700 sqm transacted between Q2 2016 and Q1 2017). 

The vacancy rate saw out the quarter at 10.7%, 330 basis points lower than one year ago. The majority of vacant floorspace was located on the Outskirts, where the vacancy rate stood at 15% at the close of this quarter. The CBD and Centre achieved rates of 8% and 5% respectively, the lowest for the city. The volume of stock increased by 19,000 sqm over these last three months. Some 64,000 sqm will be added to the stock over this year, the majority being speculative in nature. 

The active demand for space has taken average rents to €16/sqm/month during the first quarter, from the €14.60/sqm/month seen during the same quarter one year ago. This demonstrates the view that in spite of the lack of rises in prime rents in sub-markets, the gap between prime rents and average rents is closing. Incentives remained stable, amounting to one month for each year of binding compliance.

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