2021-09-14-莱坊-Spain_Offices_Snapshot_Q3_2021_September_2021_2页_784kb

Madrid Office Market Summary - Q3 2021

Core Content

The Q3 2021 office market snapshot for Madrid provides an overview of the take-up, rental activity, and investment trends in the region. It also includes insights into the broader European market and highlights key deals in both Madrid and Barcelona.

Key Market Statistics

• Take-up in Q3 2021: 85,000 sq m, slightly below the same period in 2020 but above the levels recorded in 2013 and 2014, which were the worst years of the previous crisis.
• Average Prime Rent: Stabilized at 32.5 €/sq m/month.
• Maximum Rent Achieved: 39 €/sq m/month, in two deals signed in the Paseo de la Castellana submarket.
• Availability: Increased by 11.8%, aligning with the take-up rate and the introduction of new projects.
• Grade A Availability: Remained at 0.5% of the office stock in the Central Business District (CBD).

Take-up by Submarket

Note: Distortions caused by non-relevant deals have been removed.

Investment Market Overview

• Total Investment in Spain (Q3 2021): Over €770 million, representing an increase of more than 80% compared to the same period in 2020.
• Cumulative Investment for the Year: Approximately €1,770 million.
• Investor Activity: There is a noticeable return of investors, with pooled funds being the main players in both Madrid and Barcelona, accounting for 98% and 95% of transactions respectively.

Key Deals in Madrid

• SECUITIRAS DIRECT: 8,700 sq m at CAM. DE LOS GAMOS 5.
• GRUPO ANAYA: 5,800 sq m at VALENTÍN BEATO 21.
• ELECNOR: 4,500 sq m at ARTURO SORIA 343.

Key Deals in Barcelona

1. Pentagon Portfolio:

   • Vendor: AXA Real Estate
   • Purchaser: Kanam
   • Value: €280 million
   • Price per sq m: 4,100 €/sq m

2. C/ZAMORA 70-73 (22@):

   • Vendor: Grenwell Group
   • Purchaser: CBRE Global Inv.
   • Value: €75 million (estimated)
   • Price per sq m: 4,900 €/sq m

3. C/TANGER 36 (FUT.Amazon Office):

   • Vendor: Enric Gregori (Family Office)
   • Purchaser: Kanam
   • Value: €67 million
   • Price per sq m: 8,000 €/sq m

Note: The largest transaction was conducted by Kanam, who also acquired Amazon's second headquarters in Barcelona for almost €70 million.

European Prime Yields (Q2 2021)

Source: Knight Frank Research

Market Outlook

• The Q3 2021 take-up suggests a recovery in demand, especially following the summer and the stabilization of the pandemic.
• The market is expected to see increased activity at the start of 2022, with potential impacts on rental rates and availability.
• The uncertainty surrounding the future impact of the pandemic on the real estate market remains a key factor affecting market behavior.

Contact Information

• Jorge Sena: Partner, Head of Commercial
  +34 600 919 004 | Jorge.Sena@es.knightfrank.com

• Raul Vicente: Associate, Head of Office Agency
  +34 600 919 023 | Raul.Vicente@es.knightfrank.com

• Rosa Uriol: Head of Research
  +34 600 919 114 | RosaUriol@es.knightfrank.com

• Pedro Luengo: Director Capital Markets Offices
  +34 600 919 107 | Pedro.Luengo@es.knightfrank.com

Recent Publications

• Eur. Office M. Summer 2021
• Active Capital. 2021

Reports are available at: knightfrank.es (Spanish) and knightfrank.com/research (English).

Disclaimer

This report is for general information only and should not be relied upon for decision-making. Knight Frank España, S.A.U. does not accept any responsibility or liability for losses or damages resulting from the use of this information. Reproduction of this report is not permitted without prior written approval.