Office Rents Rose By 5% In Q1 2016
11 May 2016 – Expansión
The reactivation of the real estate market is also being reflected in the office segment. The average price of offices in Spain increased by 5% during the first quarter of the year, according to a report about the sector by the real estate portal misoficinas.es. The report indicates that the market is continuing its positive trend, but “in moderation”. Searches for offices centre around Madrid and Barcelona, which account for 75% of the total, and the prices of offices sought, at the global level, have increased with respect to the same period in 2015, by 7.81% in terms of the minimum price and by 2.81% in terms of the maximum price.
In Madrid, potential tenants focus on the financial district, Alcobendas and the west, which account for 90% of all searches. Users searched for office spaces that are 5% larger than in the same period last year in the centre of the capital. Also in the capital, the rental price of offices sought rose by 6.71% during the first quarter, to reach €12.31/sqm. The size of the spaces being sought in Madrid also increased, up from 585 sqm to 805 sqm.
In Barcelona, the size of the spaces being sought also increased, to reach maximums of 500 sqm during the first quarter, compared with 416 sqm during the same period in 2015. Nevertheless, the report noted a decrease of 5.47% in terms of the average price demanded, with the average price for office space amounting to €9.29/sqm. In this way, the average cost of leasing an office in Madrid is now 32.5% higher than in Barcelona, whereby increasing the differential between the two cities, up from just 17.4% in 2015.
In the rest of Spain, the average price sought rose from €5.86/sqm in 2015 to €6.01/sqm in 2016. The size of space sought also increased, given that in 2015, potential tenants wanted 211 sqm on average compared with 223 sqm in 2016.
Original story: Expansión
Translation: Carmel Drake