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Aguirre Newman: Inv’t in Offices Exceeded €1.7bn in YTD Sept

1 December 2017 – Eje Prime

The office sector in Spain is stable. During the first nine months of the year, the sector accounted for investment amounting to €1.7 billion, in line with the investment level recorded during the same period in 2016, according to the Office Market Report compiled by the real estate consultancy firm Aguirre Newman.

“The main indicators of the office market (the availability rate, the uptake rate, rental prices and the evolution of stock) have continued their positive behaviour previously observed in recent years”, explain sources at the consultancy firm.

“The high level of economic activity in Spain, combined with the strong economic performance of the main countries in our environment, are having a clear impact on our two main office markets”, they say.

Focusing on Madrid, the gross leasing of office space during the third quarter of the year amounted to 93,173 m2, which represents an increase of 2% with respect to the same period in 2016, although, according to Aguirre Newman’s report, 16 fewer operations were closed in 2017 (down to 96).

One of the most active areas in the capital was the Other Business Districts segment (RDN), which accounted for 31% of the total area leased. Nevertheless, the report highlights that the leasing of space in the Central Business District (CBD), with 27% of the total and the OUT area, with 23% of the total, showed significant increases, more than doubling the figure recorded during the same period in 2016 in absolute terms.

Regarding rents, the maximum recorded during that period was €36/m2/month, whilst the average rent in the CBD area was €28.96/m2/month. In the Decentralised area, the average rent amounted to €12.71/m2/month.

In Barcelona, during the third quarter of 2017, 57,000 m2 of office space was leased, which represented a decrease of 32% with respect to the same period in 2016. Nevertheless, the cumulative figure for the year increased by 8% with respect to the first three quarters of 2016, to reach 265,000 m2.

During the period, 103 operations were closed, with an average surface area of 562 m2, in line with the situation observed in previous periods. The most significant operation by size was the deal closed by WeWork, which leased more than 6,500 m2 of office space in the 22@ district.

“In terms of rents, the upwards trend is continuing both in terms of maximum levels, as well as averages”, explain sources at the consultancy firm. The maximum rent recorded during the period was €23/m2/month, whilst the average rent in the CBD was €18.25/m2/month. In the Decentralised area, the average rent reached €14.01/m2/month.

Original story: Eje Prime

Translation: Carmel

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