Rental market - offices

Barcelona – Rental Market

Take-up in the office market in Barcelona set a new record during the first half of 2019 with 251,000 sqm signed. Of special mention is that out of the 103,450 sq m signed in the second quarter, 16% was taken up by operators of flexible office spaces, showing their interest in the Barcelona market. Likewise, the short-term future supply about to become available stands at a level at which current demand can easily absorb. The vacancy rate remains at an all-time low of 1.9% in the CBD. A lack of prime supply together with solid take-up continue to drive up rents, with prime rents reaching €26.75/sqm/month, an increase of +6% year to date.

Sources: Reports by Jones Lang Lasalle, Cushman & Wakefield, CBRE & Savills.

Madrid– Rental Market

During the second quarter of 2019, more than 191,000 sqm were signed in the office market in Madrid, positioning take-up of the first half at 334,500 sqm, an increase of +42% compared to the same period of the previous year. The vacancy rate stood at 9% in Madrid, with a vacancy rate in the CBD at around 6%. At the close of the first half, prime rents continued to grow in Madrid and stood at €35.75/sqm/month, which represents an increase of +4% year to date.

Paris – Rental Market

In the offices market in Paris, take-up in the first half of 2019 reached a total of 1,101,000 sqm, in line with the average over recent years. The Coworking market has experienced strong growth in the last three years, proof of this is that, during the first half of 2019, 50% of the transactions of more than 5,000 sqm were led by operators of flexible spaces. Future supply in the coming three years is expected to be 2.2 million sqm, and since it has already been pre-let, it will be insufficient to meet market demand. This situation is highlighted in the CBD, where the vacancy rate stood at 1.6%, an historically low level, continuing to put pressure on prime rents which continue to increase and stand at €830/sqm/year.