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BNP Paribas: Office Rentals Rose by 22% in Madrid in 2017

5 January 2018  – Eje Prime

The good news is never-ending for the office sector in Spain. In Madrid in 2017, the market recorded its highest level of office rentals since 2007, increase the absorption of this asset type by 22%, thanks to greater demand from public administrations, according to a report from BNP Paribas Real Estate.

According to the entity, last year, 525,000 m2 of office space was leased in Madrid. The office rental figures recorded in Madrid still do not approach the almost 1 million m2 of space that was leased ten years ago. Nevertheless, it is worth taking into account the fact that companies no longer need such large spaces to undertake their activity because working practices have changed, and there is now a trend to optimise spaces.

The increase in demand was also accompanied by an increase in prices, which rose to €31/m2/month in the most exclusive areas. Nevertheless, some lease contracts were also signed for prices of up to €36/m2/month in certain buildings in the Spanish capital’s financial district.

Original story: Eje Prime

Translation: Carmel Drake