Madrid’s office market is accelerating. Since 2021, figures have been improving, and that year saw over 400,000 m² of space leased—a 19% increase compared to the previous year. In the first quarter of 2022, Madrid recorded the highest figure for this period in recent years (135,000 m²), marking a year-on-year increase of 46% compared to the historical average.
One notable point regarding leasing activity is the absence of major deals (those involving more than 10,000 m²). Moreover, most operations focused on the M-30 area and the city center (nearly 60% of transactions), as active asset transformation is drawing demand. However, centralization comes with both pros and cons, as the availability rate is decreasing slowly and gradually. Another highlight is the continued consolidation of flex operators—flexible offices—who represented 9% of total leasing activity.
For 2023, more than 500,000 m² are expected to be developed through new construction and comprehensive refurbishments. The latter plays a key role (59% of the buildings), as it reduces the environmental impact and updates the stock to the latest standards in efficiency and wellbeing.
Barcelona continues to attract interest
Barcelona’s case is similar to Madrid’s. The market recorded 91,000 m² of leased space—its third-best historical result—representing a 21% increase compared to 2021. One of the unique aspects of Barcelona is that most operations fall below 500 m², as its business landscape is largely composed of SMEs. Unlike Madrid, the area with the highest volume of leasing activity was the outskirts (37% of operations), driven by the growth of new business areas. Lastly, the tech, healthcare, and logistics sectors led market activity.
Overall, demand shows a clear interest in relocating. This trend could shape the market’s activity in the coming years, linked to the search for assets with higher and better standards in quality, innovation, and sustainability. That said, future developments will be influenced by the supply chain crisis, rising prices, and socio-economic factors such as the conflict in Ukraine.
