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Madrid : a positive start to 2013

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A research produced by DTZ

Madrid : a positive start to 2013

The year has begun on a positive note, with 166,000m2 in office take up.
During this past quarter we have seen almost a 160% increase in take up against the previous quarter. This represents the highest quarterly take up figure seen since the start of the crisis in 2008 and is an almost 200% increase on the first quarter of 2012.

The largest transaction this quarter was 50,600 sqm for Vodafone in the Outskirts. This is followed by almost 16,000 sqm for Iberia in the Periphery and 14,500 sqm for Agencia EFE.

This strong first quarter raises hopes that the market will experience greater activity in 2013 than during the last year. The first quarter has started 2013 on a very positive note and is almost 60% of the total closing take-up volume for 2012.

Office vacancy has fallen for the first time since the onset of the crisis. Whilst this is a positive signal, it is highly likely that this decline will reverse somewhat as relocating occupiers leave their current premises.

It is estimated that less new supply will hit the market this year than in 2012. Approximately 21,500 sq m of new supply have been delivered this quarter. The completed office building is for FCC and is located in Las Tablas.

As can be seen in Table 2, rents in all areas have fallen significantly over the past year. Rents in the CBD suffered a sharp correction (close to 40%) in the years following the start of the crisis in 2007. The steep fall in rents slowed during 2010 and rents have generally continued to decline at a steady pace since.

Source : DTZ (Groupe UGL)

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Keywords : DTZ