• H1 2024 Office Sector Overview

    October, 2024

The office sector reached an investment volume of c. €800 million in H1 2024 (+13% vs. H1 2023), mainly driven by purchases for own use and for subsequent conversion (change of use), mostly into residential assets.

Madrid recorded a take-up figure of c. 250,000 sq.m. (c. +5% vs. H1 2023), while Barcelona stood at c. 170,000 sq.m. (c. +45% vs. H1 2023). In Madrid, take-up growth was driven by higher number of small deals (>500 sq.m.). Especially remarkable has been the change of headquarters of Garrigues and Siemens. In Barcelona, the growth was mainly driven by flexible operators and an increase in transactions’ average surfaces.

Madrid’s vacancy rate slightly increased to 9.9% (vs. 9.6% in H1 2023). In CBD, the vacancy rate stands at a residual 3.7%, due to the slowdown in new developments and the remove of offices from the market for changes of use. Barcelona’s vacancy rate grew more significantly to 10.1% (vs. 9.2% in H1 2023) influenced by the peripheral area. In CBD the vacancy rates remain at 5%.

Prime rents have shown resilience and continued to rise in both markets due to the low vacancy rates. In Madrid’s CBD, prime rents increased to €40/sq.m./month (+12% vs. H1 2023), while Barcelona’s prime rents reached €29/sq.m./month (+4% vs. H1 2023). The average rents are €20.9/sq.m./month (+1.1% vs. H1 2023) and €18/sq.m./month (+6% vs. H1 2023). Prime yields increased to 4.75% (vs. 4.15% in H1 2023) in Madrid and to 4.95% (vs. 4.25% in H1 2023) in Barcelona.

Selected transactions: In the second quarter, Stoneshield Capital acquired the Bayer Tower in Barcelona from Bayer for €49 million (25,164 m², €1,947/m²). In the same quarter, Mutualidad de la Abogacía purchased an office building in Madrid from UBS for €46 million (7,296 m², €6,305/m²). Additionally, in Q2, GMP acquired an office building in Madrid from Grosvenor for €44 million (10,634 m², €4,132/m²). Also, in Q2, Azora acquired an office building in Madrid from an undisclosed seller for €30 million (9,904 m², €3,029/m²). Finally, in the second quarter, Arkea REIM purchased the Prima Building in Barcelona from Freo for €25 million (24,000 m², €1,041/m²).