In the annual total, the year ended with close to 420,000 sq m, representing a 19% year-on-year growth.

The signing of two megadeals (≥10,000 sq m) contributed nearly 31,000 sq m to the take-up figure (7% of the total). However, if these deals are excluded from the analysis of the two years, the market shows signs of recovery, with an increase of 20%.

In terms of the number of transactions, the 411 deals identified represent 37% more than the previous year, putting it close to the annual average of the historical series (438 deals).

The interior of the M-30 continues to attract demand, accounting for 51% of signed transactions (211), although the scarcity of large spaces diverts part of the search towards the periphery. In fact, almost 40% of the deals signed outside the ring road were 1,000 sq m or more, while only 20% were in the central hub.

In terms of take-up, the inner periphery accounted for a third of the total, with the focus on the north and east zones, which made up almost 25%, the same level of take-up as the entire outer periphery.

The submarket with the best records, both in terms of take-up volume and deals, was MadBit. The following factors are attracting numerous companies to this area: situated in a revitalised urban environment with quality buildings, ease of access via the metro (as it has several stations in the area), as well as its proximity to the A2, the M-40 and the airport.

Flexible Offices

Flex operators have resumed their expansion plans, albeit at a slower pace than before the pandemic. During 2021, 12 transactions were recorded, accounting for 5% of take-up (around 20,000 sq m signed), bringing the average surface area to around 1,600 sq m. Although this represents significant progress compared to 2020 figures (seven deals, 2.4% of take-up and 1,200 sq m average size), there is still some way to go to recover pre-COVID levels with an average of 60,000 sq m, 20 deals and 2,700 sq m average deal size.

The success of centres is related to various factors, such as the location, the size of spaces, the distribution of work and dispersion areas, as well as the range of services, among others.

The key to location is ease of access by public transport, either in the city centre (within the M-30) or in the periphery. The type of company and the number of workstations also play a role. Companies that opt for offshore centres are generally small in size (10 workstations and prioritise the prestigious aspect of the space and the area.

Rents

The rise in rental values directly relates to the increase in quality standards in office buildings. In 2021, just over one-third of deals were registered in buildings with sustainability certificates (LEED or BREAM), accounting for almost 50% of the take-up.

Future Supply

Over the next two years, 525,000 sq m of new and refurbished space is expected to enter the market, distributed very evenly between 2022 and 2023, with just over 260,000 sq m in each year.

Refurbishment projects are once again gaining prominence, accounting for two thirds of the buildings in the pipeline and 57% of the surface area. It is worth noting that, at a time when environmental awareness is so important, building refurbishment generates less waste and reduces the environmental impact. Although most of the refurbishment work is located within the M-30, it is increasingly common to find assets undergoing refurbishment in the submarkets in the periphery.

Of the total amount of new space planned, 20% will be occupied, either by the owner or a tenant who has signed a pre-let contract. In 2022, the approximately 85,000 sq m of committed space represents 32% of the total, while the current figure of occupied space in 2023 (17,000 sq m) accounts for 9%.

The geographical distribution by submarkets of new vacant space (420,500 sq m) is led by MadBit (68,000 sq m across six assets). Almost 50% of the surface area is concentrated in the Edificio OM Infinito, which will enter with part of the surface area already occupied (4,300 sq m).