Madrid office leases exceeded record levels in 2015 with a total area of 490,000m² signed for, the highest since the crisis began in 2007 and 17% more than even the most optimistic forecasts predicted.
This positive turn in market performance in recent months is largely a response to the strong macroeconomic outlook. According to Humphrey White, partner and head of commercial, Knight Frank: "The absorption figure stands at close to its historical average level, this means that the employment market has evolved positively to stand on a strip of healthy market. This increase in recent months compared to the forecasts that we drove is the result of a less conservative market that has evolved more quickly thanks to the good economic prospects."
In comparison to 2014, the figure increased by 27% (385,000m² vs. 490,000m²) and is the highest since the market peak in 2007. Although far from pre-crisis levels yet, developments in recent years has been positive.
The second half of 2015 particularly influenced the growth; until June absorption totalled 198,000m2 but in H2 292,000m2 was recorded, 47% more. Humphrey White added: “Take-up has been clearly starring multinational users of class-A buildings, which are those with the greatest demand.”
Furthermore, the lack of quality space (class-A) coupled with increased demand, resulted in prime rents increasing by 6% in the last year, reaching €27/m²/month. The main deals in 2015 included 36,000m² in Ríos Rosas for WPP, 26; KPMG in Crystal Tower with 20,000m², BNP Paribas in Emilio Vargas, 4 with 19,100m² and E & Y Torre Titania 19,000m².
