MADRID-Hertz recently signed an office lease in the 350,000-square-foot Tripark Las Rozas, which will move the company’s central Spanish headquarters into a 21,000-square-foot space. However, even with the lease, the Hines-owned building, opened this year, will only be 40% occupied.

The property contains three four-story buildings that are certified LEED Gold, one of the reasons Hertz said it made the move from nearby Jose Echegaray Street. “Relocating our employees…underscores Hertz’s policy of respecting the environment and attests to our commitment for sustainable surroundings,” said Juan Carlos Azcona, general director of Hertz Spain. The DIA Group supermarket chain also leases at the complex.

Green development hasn’t lifted the building past the country’s economic troubles, however, says Fernando Arenas, general director of Hines Spain. He cites dried-up tenant demand that fell by 64% from 2007 to 2009, higher vacancy rates, declining rents and dented business confidence as to why his company has had trouble leasing the new office complex.

“The current economic uncertainty in Spain has led to companies being very cautious when considering major decisions such as office moves,” Arenas tells GlobeSt.com. “Indeed, the tendency is to renegotiate terms and space (reduction) in exiting accommodation. The option of moving offices - even if they are more efficient and sustainable - is often only considered if significant overall savings can be delivered.”

However, he says the Tripark building is doing better than others in the local office market, and says there is hope for a resurgence. “We feel that we are near the bottom of this curve,” he said.