Office Owners Optimistic About Market Recovery

27/02/2014 – Expansion

The most important office markets, namely the ones of Madrid and Barcelona, began the year 2014 with positive outlook for the future. Due to an increase in new space lease contract signing (assigned to Iberia and Vodafone large volume operations), grand owners concure the opinion that the renting prices will hit the bottom this year.

According to report drawn by Aguirre Newman, based on view of 120 executives from the sector, more than 70% of those experts believe the office prices will reach the rock bottom level. (…). Therefore, 30% of the owners observed a rise in the number of requests for information about vacant office spaces. As Ignacio Martínez Avial from the company notices, “firms do not grant long vesting period for lease payments anymore. First, the period will be cancelled and then, in 2015, the prices will climb”. He also points out that Madrid´s market will recover faster than the one of Barcelona.

However, the good news seem to be intended solely for the buildings located in primary areas of the cities. The owners fear that in other zones prices might plummet even more.

Nonetheless, 69% of the surveyed doubt in reaching the same signing performance as it was in 2007.

 

 

Original article: Expansión (R. R.)

Translation: AURA REE

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