652 commercial leases results

The growth of Spain’s economy is benefiting the commercial property market in Madrid. Different types of premises are in top demand among tenants. Offices and retail spaces face the highest take-up in Madrid. Nowadays, approximately 1,26 million sq.m. of workspaces are available for immediate occupancy. The logistics sphere is the third preferred sector after retail and offices. Recently, logistics take-up has exceeded 936 thousand sq.m. The vacancy rate in Madrid is 9,6%. The prime area, i.e., the CBD, has only 2,5% of the vacant spaces. Because the city centre is the most popular destination for companies looking to set up, it has limited supply proposals. Despite the higher rental prices, the offices in new and refurbished business centres are more popular among renters than those situated in old buildings. In the nearest future, over 280 thousand sq.m. of commercial spaces will enter Madrid’s market. This number will be distributed between the CBD and the peripheral areas of Madrid, with the central part taking the more significant percentage of supply. During the previous year, the investment volume into the commercial real estate market in Madrid amounted to 4,15 billion euros.

Establishing a business in Madrid, the entrepreneurs, first‌ ‌of‌ ‌all, the appropriate commercial property there. Depending upon the sphere you are involved in; there is a possibility to rent various kinds of commercial premises in Madrid - business centres, offices, spaces for meetings and conferences, hotels, warehouses, etc. The shift in the working structure has increased the demand for flexible commercial properties in Madrid. Thus, the landlords propose a variety of coworking venues and virtual offices options for rent by transforming the traditional spaces into the alternative ones. The rental growth is expected in decentralized Madrid’s areas, due to the lack of supply in its central part.

Flexibility defines the growth of the commercial real estate market in Madrid for the upcoming years. It concerns not only the type of the properties but also the layout, leasing terms and technological issues. The plan is to incorporate the 5G technology into the office market so that the buildings will no longer require the raised flooring and boast faster connections between the entire communication system.