Office leasing in Spain’s big cities continues to increase, hitting activity levels not seen since the boom years.
There were nine deals signed in Madrid with a floor space above 7,500 square metres during 2013 and 2014, according to CBRE, the property consultancy. In Barcelona there have been seven deals with a floor space above 5,000 square metres in the last 18 months, the firm reports.
While a flurry of activity in the office market is not unusual, due to expiring leases and competition in the market, CBRE reports the office market has been in a state of recovery since the end of 2013.
In many ways, this is good news for the overall property market. Office space uptake reflects strength in the economy, which will feed employment and increase demand for housing. Solid office activity also will draw more institutional investors, who are helping to bolster many markets.
In the last 18 months, 32 deals between 2,500 square metres and 7,500 square metres were closed in Madrid alone, with almost half signed this year, CBRE reports. There were 19 deals in that size range in Barcelona in the last 18 months.
Deals signed this summer include space in three of Spain’s most recognizable buildings – Torre Agbar in Barcelona, the Axa tower in Madrid, and the Capgemini office in Valencia.
In Valencia, the last five years have been characterised by a “complete weakness”, CBRE estimates that this year will end with an increase of more than 25 per cent.
Several national and international companies are looking for new offices in Spain, so more big deals are expected this year, CBRE says.
