MADRID-Madrid office leasing during the second quarter rose threefold 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.
The second quarter deals included three at more than 108,000 square feet, the realtor said in a study. A rise in owner-occupier sales appears to be on the increase, with more than 10% deals closed. In investment, volumes in the first half of this year stood 7% higher than first half 2009, with hot demand for prime office assets. The average investment volume rose from $19 million in the first quarter 2010 to $43 million in Q2 2010.
Savills' Luis Espadas said there was greater demand for prime office assets, but despite the steady growth in the investment markets, rents are not yet rising. Rents in the CBD remain at the same levels as the first quarter, he said. Outside the CBD rents continue to fall. "We anticipate that national investors will continue to focus on Madrid’s CBD for the second half of the year as with its vacancy rates below market average, it will continue to be the ‘safe haven’," Espadas said.
Allan Saunderson is a managing editor of Property Investor Europe and a contributor to GlobeSt.com.
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