300,000 square metres of new offices are expected to come on to the market in Madrid over the course of 2012
According to an article published in Global Real Estate, the office market in Madrid appears to have taken a downward turn since the beginning of 2012. The vacancy rate in the Spanish city has been creeping up over the past few months, while a rising supply of such commercial properties coupled with falling demand is putting pressure on rents.
300,000 square metres of new offices are expected to come on to the market in Madrid over the course of 2012; however, demand is sliding, with many occupiers choosing to downsize due to the current economic climate.
On average, the rent charged for Spanish commercial real estate in Madrid's central business district is now nearly 40 per cent below its peak, and the organisation is forecasting prime rents will stand at 309 euros per sq m per year by the end of the first quarter of 2012.
Barcelona also made it into the top ten, ranked as the seventh most desirable location in which to have retail premises on the continent.