2023-02-13-莱坊-Spain_Offices_Snapshot_Q4_2022_2页_727kb

Offices Snapshot Summary - Q4 2022

Core Content Overview

This document provides an analysis of the office market in Madrid and Barcelona during the fourth quarter of 2022, highlighting key trends in take-up, rent, and investment activity. It also includes insights into the broader European market and contact information for Knight Frank's team in Spain.

Office Market Take-Up

• Q4 2022 Take-Up: Over 115,000 sq m, representing a 10% increase compared to the same quarter in 2021.
• Annual Take-Up: Exceeds 500,000 sq m, a 40% increase over 2021.
• Average Prime Rent: Remains at €33.5/sq m/month, though expected to rise in the coming years due to increased demand for high-quality space.
• Maximum Rent: Recorded in Plaza Pablo Ruiz Picasso, reaching €40/sq m/month.
• Vacancy Rate: Slightly increased to 11.5%, partly due to new completions entering the market.
• Prime Location Availability: Very low, with CBD vacancy rate below 5% and availability in these assets at 0.4% of the total office stock.

Top 3 Deals in Q4 2022

Investment Market in Spain

• Total Office Investment in 2022: Approximately €2.6 billion, a 10% increase from 2021.
• Large Deals: Nearly 10% of deals exceeded €100 million.
• Capital Investment: Reached €1.4 billion, a 120% increase compared to the previous year.
• Barcelona Investment: Declined by 45% to €880 million, following a record year in 2021.
• Q4 Investment Volume: €300 million, the least dynamic quarter of the year, with Q3 being the most active at €1.1 billion.
• Investors: Funds are the largest investors in this period.

European Prime Yields (Q4 2022)

*Note: Milan data is from Q3 2022.

Key Observations

• The office market in Madrid has shown resilience and growth, with increased take-up and stable prime rents.
• High-quality spaces in prime locations such as the CBD and Plaza Pablo Ruiz Picasso are in high demand, leading to rising rents.
• The investment market has seen a significant increase in 2022, driven by large transactions and a surge in capital inflows.
• The Barcelona office market experienced a sharp decline in investment, likely due to the comparison with the previous year's record.
• The document highlights the uncertainty caused by the ongoing impact of the pandemic on real estate market activity.

Contact Information

• Commercial: Jorge Sena, Partner, Head of Commercial
  +34 600 919 004 | Jorge.Sena@es.knightfrank.com
• Agency Office: Raul Vicente, Associate, Head of Office Agency
  +34 600 919 023 | Raul.Vicente@es.knightfrank.com
• Research: Rosa Uriol, Head of Research
  +34 600 919 114 | RosaUriol@es.knightfrank.com
• Capital Markets: Pedro Luengo, Director Capital Markets Offices
  +34 600 919 107 | Pedro.Luengo@es.knightfrank.com

Recent Publications

• "Your Space" (2021): A publication available on knightfrank.es
• "Active Capital" (2022): A report available on knightfrank.com/research

Disclaimer

This report is for general information only and should not be relied upon for decision-making. Knight Frank España, S.A.U. disclaims any responsibility or liability for any loss or damage resulting from the use of this information.
Reproduction of this report is not permitted without prior written approval.
Knight Frank España is a limited liability partnership registered in Madrid with CIF: A-79122552.
Registered office: Suero de Quiñones 34, 28002 Madrid.