The boost in the office building investment market has been provided by business expansion, job growth and a significant demand for new work spaces which include technological innovation.
Even though, in some European countries, other types of assets such as hotels, rental villas, halls of residence and rest homes, represent good opportunities, for the authours of the report, the office buildings segment stands out thanks to the rising cycle in the rental market prices, the development of new projects and the stability in the long term of the owners’ income.
In Spain, Alejandro Campoy, capital markets director at Savills Aguirre Newman, explains that «the lack of assets in prime locations has diverted the attention of investors who usually look for this type of assets into more value-added locations and typologies. In fact, Madrid’s office buildings’ market has some of the greatest potential in Europe, through the restoration and upgrading of its assets, with the rental prices’ increase being much higher in restored buildings than in non restored buildings, and still with more than 80% of the buildings not having been restored».