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Offices: the rent increase and the developer return

The first semester of the year had brought a highly positive behavior to offices market, in Madrid and in Barcelona, with important raises in contracting spaces and the increase of rents, as refers the last report from Aguirre Newman.

During the first semester of the year the gross contracting of offices in Madrid has surpassed the 270,000 m², highlighting the positive behavior of the demand during the second trimester of 2017. According to the consultant Aguirre Newman, the improvement in business expectations and the increase of mid-sized operations have significantly contributed to the achievement of the attained results. Of particular note is the high demand interest towards the buildings rehabilitated in the last months.

Aguirre Newman refers as one of the most characteristic features of that time the return to the market of new offices spaces development. There are projects with great surface volume and high quality standards, such as Torre Chamartín (14.000 m²), Julián Camarillo 29-31 (40.000 m²), Madrid Río (26.000 m²) Discovery Building (10.000 m²) or Príncipe de Vergara (11.000 m²). On other hand, the rehabilitation of existing buildings continues, being currently at least 300,000 m² in the process of rehabilitation, which is going to help improve the quality of office park in Madrid.

During the period covered, the availability has continued to decline in the overall of the market in Madrid.

It's expected the demand continues with its good behavior, improving the record from the year 2016, until surpass the 500,000 m² of gross contracting.

 

Barcelona also increases the offices contracting

Aguirre Newman, also reflects in its report the raise of gross office contracting in Barcelona market, during the first semester of 2017, until 207.653 m², representing an increase of 29% regarding the same period last year, and of 22% compared with last semester. The demand behavior has improved in line with the semester advance, mainly in the second half with 127,000 m² outsourced, 59% above the contracting registered in the first semester.

In the first six month of the year, office stock in Barcelona had grown a minimum until reached a total of 5,967,703 m². During this period, only one project was incorporated in the decentralized area, Torre Marina at BCN Fira District, with 20,800 m². The development activity will concentrate at 22@ area for the next years. Until 2018 it's not expected to be included new projects, except for a project with 2,750 m² expected to join the market in the next months in 22@ area. 

Currently there are 503,000 m² offices spaces available, having reduced the availability in 62,000 m² during the last six months.

Aguirre Newman expects the gross contracting be able to consolidate reaching the 390.000 m² for the full year of 2017, due to the excellent results of contracting attained in the first semester of the year, and to the good perspectives at short term. Regarding the behavior of the rental prices, the forecasts for the end of 2017 set an upward trend of average rents, mainly in the areas where availability is almost residual, particularly in the Business District (CDN + RDN). In the rest of the market, specifically in 22@ area, the rental prices continue to improve its behavior in accordance with the levels of availability, quality of buildings and evolution of contracting showing each area.