MADRID-Madrid office leasing during the second quarter rosethreefold to 1.7 million square feet, compared to Q2 2009. Also,first half leasing this year doubled compared to first half 2009,according to international real estate advisor Savills.

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The second quarter deals included three at more than 108,000square feet, the realtor said in a study. A rise in owner-occupiersales appears to be on the increase, with more than 10% dealsclosed. In investment, volumes in the first half of this yearstood 7% higher than first half 2009, with hot demand for primeoffice assets. The average investment volume rose from $19 millionin the first quarter 2010 to $43 million in Q2 2010.

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Savills' Luis Espadas said there was greater demand for primeoffice assets, but despite the steady growth in the investmentmarkets, rents are not yet rising. Rents in the CBD remain at thesame levels as the first quarter, he said. Outside the CBD rentscontinue to fall. "We anticipate that national investors willcontinue to focus on Madrid’s CBD for the second half of the yearas with its vacancy rates below market average, it will continue tobe the ‘safe haven’," Espadas said.

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AllanSaunderson is a managing editor of Property InvestorEurope and a contributor to GlobeSt.com.

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