Law Firms Take Advantage From the Recession & Move Premises

17/01/2014 – Expansion

In 2012, law offices occupied around 30.000 square meters in the “business golden mile” – the Santiago Bernabéu Stadium and the Puerta de Alcalá areas and the neighbouring zones, according to the Law Firm Perspective Global 2013 report by Jones Lang LaSalle.

A considerable number of international companies express constantly their interest in Madrid´s market and many chose it as a base (for instance, Linklaters, Pérez-Llorca or Hogan Lovells) or decided to renew their rent contracts (Freshfields and Clifford Chance). Other companies, like Allen & Overy, are still exploring the market in search for opportunities.

Tenants cautiously watch the market, waiting for economic revival. (…) Lack of the quality product becomes a serious challenge to them as finding an office of more than 2.000 square meter in the “golden mile” area turns out to be almost impossible. No new developments are foreseen for the zone, except for old buildings renovations. Due to the shortage above, refurbished buildings enjoy popularity (…).

In fact, market´s slump drives the landlords to making offers for 4 – 12 month free of charge rents. (…) They are also ready to amend contracts to keep their habitual tenants.

When it comes to upmarket rentals, the report posts the average price per square meter in annual terms at €291 and claims it is enhanced by 5 up to 30 months free. The law firms occupy between 3% and 5% of the market and there are six companies run on more than 5.000 m2.

(…) Jones Lang LaSalle points out that in London and Germany lessers´position is strenghtening and there are bargains found in Madrid, as well as in Brussels, Milan, Paris or Warsaw. (…).

Original article: Expansión (M. Serraller)

Translation: AURA REE