How to Choose the Best Area for your Office in Madrid

Which is the best area according to value for money?

The answer depends on your company's priorities: are you looking for prestige?, large surfaces that are modern? or perhaps budget optimization?. Broadly speaking, and depending on the answer, the options would be:

Which neighborhoods are attracting more companies and why?

Madrid's market shows an interesting duality in demand. Unlike other cities, activity is not concentrated in a single point, but in two major poles:

• TheDecentralized Zone (between M-30 and M-40) leads leasing activity, capturing almost half of total demand with 48%. The reason? It's the only zone with a significant supply of modern, large-scale buildings available.
• The CBD axis (Castellana) and City Center remains extremely strong, jointly attracting 40% of demand. Companies continue to value the centrality, brand image, and proximity to clients and services that these locations offer, despite the scarcity of available offices.

Where are companies concentrating by sectors?

Certain sectors are setting the market pace:

• Professional Services: This sector, driven by large law firms and consultancies, leads the office demand ranking in Madrid prominently.
• Financial and Real Estate Sector: They maintain a very significant and constant market share over the last three years, consolidating their presence in the main business areas.
• Energy and Construction: Also feature among the most active sectors, protagonizing some of the most relevant operations and seeking spaces that align with their operational and corporate needs.

What trends are defining the future office in Madrid?

Company and employee needs are rapidly evolving, and three key trends define the most desired workspaces:

• Wellbeing and Personalization: Creating environments that prioritize mental health and wellbeing is crucial. In Spain, more than 65% of employees considering changing jobs cite burnout, and work-life balance is the top priority, above salary.
• Technology and Data: Smart buildings, capable of analyzing space usage and improving employee experience, are a differentiating factor. Technology is key to efficiently support flexible work models.
• Structural Flexibility: The hybrid model enjoys more than 70% positive sentiment in Spain. This drives demand not only for flexible work policies, but also for rental contracts that allow companies to adapt to future needs.

Will there be enough quality offices available in the future?

This is the most critical point of Madrid's current market. Quality supply, especially in central areas, is reducing drastically for two main reasons:

• Scarcity of new projects: The forecast for new constructions and rehabilitations until 2027 is below the historical average and insufficient to satisfy all latent demand.
• Building conversion to other uses: Madrid experiences a unique phenomenon with a strong increase in office building conversion to residential or hotel uses. This trend, which already represents 35% of total investment volume, is actively removing office stock from the market, especially in central areas.

This combination of factors is pushing the general availability rate downward, creating severe scarcity of premium spaces within the M-30, which on the other hand is boosting the increasing location of companies in flexible spaces in equipped offices.

Faced with a scenario of record rents and decreasing availability, anticipating and acting with agility is fundamental.

Starting the search right now will position you with a competitive advantage to secure the space your company needs to thrive.

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