Madrid´s Skyscrapers Rents Reduced by 40% Due to the Crisis
The economical crisis hit with great power the prime rents of the financial heart of Madrid. The offices situated in skyscrapers can pay now 40% less than they did at the splendid times before the real estate bubble outburst.
The office zones considered the most exclusive in the capital lowered their prices from €42/m2 to €24.5/m2. The discount is even greater moving outwards the zone, points out Ángel Estebaranz, the director of Officeline Business of Aguirre Newman.
Behind the M-40 highway, where the rental prices have fallen by about 20% more, the unemployment rate is equal to 19%, comparing to the prime zone where the rate oscilates around 10%, 4-5% if the Cuatro Torres Business Center exluded. (…)
Even so, the rental of the offices could close the year at 400.000 m2, which equals to 35 % more than in 2012 and 58% less than it was in 2007.
According to Patricio Palomar from Research & Investment of CBRE, among the renting transaction of the year there is Vodafone with 50.682,8 m2 (…).
Also, Cepsa has rented the tower designed by Norman Foster to Bankia in the moment of acquisition of Caja Madrid, with a view to convert it into its premises (59.357 m2).
One of the most notable operations in the fiscal year were the ones of Iberia and Agencia EFE, which moved to more spacious offices.
There are not many office spaces of more than 10.000 m2 free left on rent (…).
Some companies returned to the city center attracted by the lower prices, an opportunity that Spain gives to the international investors, interested in acquiring office buildings rented to prime operators.
In 2004, the commercialization of the four great Madrid skyscrapers forming the business park known as Cuatro Torres Business Area (CTBA) was to coincide with the real estate market collapse in Spain.
Eight years later, the Crystal Tower (Torre de Cristal) is occupied in less than 30% . The Tower hosts such companies as: Adeslas, Seat, Affirma, Coca-Cola Iberian Partners, Olswang, Havas, Agbar, Thyssen Krupp, Banco do Brasil and, since January, Volkswagen Audi España.
The PwC Tower and Picasso Tower are fully occupied, while 85% of the Torre Epacio space is taken by offices of Villar Mir Group, British American Tobacco, Ubi bank and the embassies of the UK, Australia and the Netherlands. There is about 10% of spare space in the Realia and Europa Towers while in Titania Tower there are 18.000 m2 available. (…)
Source: Cinco Días