2023-02-07-莱坊-European_Office_Dashboard_-_Madrid_Q4_2022_2页_483kb

Madrid Office Market Summary - Q4 2022

Core Content

This report provides an overview of the Madrid office market performance in the fourth quarter of 2022, highlighting key metrics such as take-up, vacancy rates, and prime rents. It also includes broader economic indicators related to Spain, including new business activity, service sector employment expectations, and the unemployment rate.

Key Market Figures

Main Points

• Take-up: The Madrid office market showed strong activity in Q4 2022, with 115,000 square metres of new take-up, the highest since 2018. This reflects a robust recovery from the pandemic-related hesitancies.
• Vacancy Rate: The vacancy rate rose slightly to 11.5%, but it is still lower than the 12.0% seen in Q4 2021, suggesting a gradual improvement in the market.
• Prime Rent: Prime rents remained stable at €402 per square metre since Q3 2022, with a 3.1% year-over-year increase. This signals a positive trend in rental prices, especially after a period of little growth.
• New Businesses in Spain: After a decline during the pandemic, new business starts returned to pre-COVID levels in 2021 and reached a peak in the first half of 2022, with activity stabilizing in recent months.
• Service Sector Employment Expectations: The service sector employment expectations remained in positive territory throughout 2022, supported by better-than-expected performance and a recent drop in inflation.
• Unemployment Rate: The unemployment rate in Spain increased slightly to 12.87% in Q4 2022 from 12.67% in Q3 2022, but it is expected to rise only moderately through 2025, remaining well below the levels seen in the first half of the previous decade.
• Services PMI: The Services Purchasing Managers' Index (PMI) for Spain returned to expansionary levels in Q4 2022, just above the 50-point threshold, indicating a positive outlook for the service sector.

Economic Context

• The service sector in Spain has shown resilience, with employment expectations remaining positive despite fluctuations in Q4 2022.
• The overall economic environment in Spain is gradually recovering, with new business activity returning to pre-pandemic levels and the unemployment rate expected to rise only modestly in the coming years.
• The Madrid office market is performing well, driven by strong take-up and stable prime rents, reflecting a broader economic recovery.

Contacts

• Local Research Contact:

  • Name: Rosa Uriol
  • Title: Head of Research
  • Email: rosa.uriol@es.knightfrank.com
  • Phone: +34 915 959 065

• Local Office Occupier Contact:

  • Name: Raul Vicente
  • Title: Associate, Head of Office Agency
  • Email: raul.vicente@es.knightfrank.com
  • Phone: +34 915 959 030

• London Contact:

  • Name: Colin Fitzgerald
  • Title: Head of Occupier Strategy & Solutions EMEA
  • Email: colin.fitzgerald@knightfrank.com
  • Phone: +44 20 7861 1203 |

Disclaimer

Knight Frank Research Reports are available at knightfrank.com/research.
Knight Frank Research provides strategic advice, consultancy services, and forecasting to a wide range of clients worldwide.
This report is for general information only and not to be relied upon in any way.
Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934.
Registered office: 55 Baker Street, London, W1U 8AN.