BNP Paribas: 22@ Accounted for 36% of Office Investments in Barcelona in 2018

8 April 2019 – 20 Minutos

Investment in the office market in Barcelona amounted to €695 million in 2018, of which €253 million (36%) corresponded to the 22@ district, according to a report compiled by BNP Paribas Real Estate España.

The forecasts for 2019 reveal that almost 77,800 m2 of new office space will be handed over in the technological district alone this year, more than doubling the figure recorded in 2018.

In terms of the sizes of the offices leased last year, 40% measured between 1,000 m2 and 2,000 m2 and 30% spanned between 301 m2 and 1,000 m2. Meanwhile, just 18% exceeded 2,000 m2, whilst 13% were smaller than 300 m2.

The average purchase price rose by 20% to between €1,500/m2 and €1,600/m2 in prime locations of the 22@ district. In turn, rental prices grew by 8% last year, to an average of €16.7/m2/month.

The 22@ district is home to 42% of all of the companies in Barcelona with high-profile tenants of the calibre of Facebook, Hewlett Packard and King, as well as Glovo and Llacuna.

Original story: 20 Minutos (by Puri Caro)

Translation/Summary: Carmel Drake

C&W: 86 Office Spaces Spanning 101,000 m2 were Leased in 22@ in 2017

2 July 2018 – Mis Oficinas

According to the Marketshot report issued by the real estate consultancy Cushman & Wakefield, Barcelona’s 22@ district closed 2017 with 86 rental operations, spanning a total surface area of 101,000 m2, which represents the highest figure in the last ten years.

The 22@ district is continuing at record levels for another year. According to the Marketshot report from the real estate consultancy firm Cushman & Wakefield, the district closed 2017 with a total of 86 rental operations, spanning a surface area of 101,000 m2, which represents the highest figure in the last ten years and 34% more than in the previous two years. This leasing figure accounted for 30% of the total office space leased in Barcelona and was led by pre-lease operations, such as the case of Amazon in the Luxa Silver building (10,241 m2), Activision (King) in Ciutat de Granada 150 (8,837 m2), Hewlett-Packard in the building located on c/Tanger 62 (8,132 m2) and WeWork in the Luxa Gold building (6,572 m2).

Potential tenants in the district are mainly looking for sustainable, high-quality spaces. In this sense, 78% of the surface area leased belongs to buildings with A or B+ ratings. The district had only 60,000 m2 of space available at the end of the first quarter of 2018, which represented a 15% decrease in the available surface area in one year and an availability rate of 7%. If we take into account high-quality buildings only (those with A and B+ ratings), the percentage of available space in the 22@ district decreases to 5.7%. Leasing levels recorded at the moment and forecast for the next few months support the development of new properties.

The 22@ district currently has 129,000 m2 of space under construction, scheduled to be handed over between the second half of 2018 and 2019. The potential space for offices in the district amounts to more than 800,000 m2, of which 350,000 m2 is located on finalist land.

Investor interest in the district broke all records in 2017. In terms of investment volumes, the 22@ district received total investment of €161 million, which tripled the €51 million recorded in 2016. In square metres, the investment volume amounted to 173,000 m2, well above the figure at the end of 2016, which amounted to 33,000 m2.

New construction in the area has reactivated in recent months, due to the type of demand and, to a large extent, the growth in rents. On the basis that this trend is going to continue, there will be an impact on capital markets, where we will start seeing operations again soon.

Flexible and coworking spaces are enjoying an unprecedented boom in Barcelona at the moment. The rise in coworking spaces in the city is clear and during the first six months of 2018, 52% more space was leased in this segment than during the whole of 2017.

In Barcelona, the 22@ district is still the main hub of innovation in the city, attracting technological companies, startups and the digital eco-system. The main coworking operation this year, amounting to 4,500 m2, was completed in 22@ and these types of spaces already account for 3.5% of the constructed stock in the district (…).

Original story: Mis Oficinas 

Translation: Carmel Drake

Axiare Acquires 12,000 m2 Office Building In Barcelona For €19.5M

27 March 2017 – Observatorio Inmobiliario

Axiare Patrimonio has closed its first purchase following the capital increase announced in March. The Socimi has invested €19.5 million in the acquisition of an office building that has a GLA of 12,000 m2 and more than 400 parking spaces. The building, which was constructed recently, comprises several floors measuring 2,500 m2 each, as well as an auditorium with capacity for 200 people. According to the Socimi, the building will generate annual rental income of €1.25 million over the next two years.

The asset is located on Avenida Can Fatjó dels Aurons in Sant Cugat, Barcelona. Sant Cugat is a strategic area for offices in Barcelona, with direct connections to the C-16 and AP-7 motorways and a 5-minute walk from the Sant Joan train station. The area is home to many institutional owners including Mapfre, Axa, Catalana Occidente, Banco Sabadell and Merlin and tenants of the calibre of Hewlett-Packard, TVE, Deutsche Bank, Banco Sabadell, Mapfre, Nespresso and Gas Natural. Sant Cugat has been extremely sought after by tenants is recent times and currently has one of the highest occupancy rates in Barcelona.

The CEO of Axiare Patrimonio, Luis López de Herrera Oria states that “we have purchased a magnificent office building for a price that is 27% below its repositioning cost and with a great potential to increase in value”.

Following this operation, during the first three months of 2017, Axiare Patrimonio has invested €157.9 million on the purchase of four tertiary-use properties, with a combined surface area of 46,354 m2 and almost 1,300 parking spaces. This property formed part of the pipeline announced by the Socimi when it presented its annual results for 2016 on 27 February.

For this operation, Axiare Patrimonio has been advised by EY, BNP Paribas Real Estate and Estrada & Partners.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake