The Madrid and Barcelona office markets continue to show solid activity in 2026, although within a context of limited supply of top-quality office space, which continues to drive prime rents and influence corporate occupancy decisions. These findings emerge from Cushman & Wakefield’s latest analysis of office market performance in both cities.
In Madrid, gross take-up during the first half of the year reached 190,000 sq m, spread across 195 new leases. The second quarter recorded more than 100,000 sq m of leasing activity, representing a 17% increase compared with the first quarter, although this was 32% lower than the second quarter of 2025, when take-up reached 150,000 sq m.
“Demand for high-quality office space remains very strong, but until new product is delivered to the market, it will be difficult for this situation to change. There is no doubt that the shortage of top-quality space is limiting transaction volumes,” said Alfredo Collar, Partner, Offices at Cushman & Wakefield Spain.
After two years of continuous growth in average deal size, during which the average leased area exceeded 1,000 sq m, the figure has fallen back below 1,000 sq m per transaction in 2026. This trend is also largely due to the limited availability of large, high-quality floorplates in certain submarkets, making larger transactions more difficult to complete.
The vacancy rate remains stable between 8% and 9%, a level maintained since the second quarter of 2025. According to the consultancy, this stability is partly explained by so-called structural vacancy, which limits any further reduction in overall availability.
The area within the M-30 ring road continues to attract the majority of demand, accounting for 54% of total take-up, compared with 46% outside this area. Space coming onto the market in the CBD’s key micromarkets continues to be absorbed very quickly.
As a result of this imbalance between supply and demand, prime rents in Madrid have now reached €44/sq m/month, representing an annual increase of more than 3.5%, with further rental growth expected throughout the remainder of the year.
Looking ahead, the delivery of new office supply is expected to remain limited. The development pipeline for 2027 totals 58,000 sq m, all of which is currently available. However, most of this volume consists of refurbishment projects, and some developments may experience delays.
Barcelona maintains strong momentum driven by high-quality buildings
In Barcelona, office take-up during the second quarter of 2026 reached 100,600 sq m, a 3% increase compared with the same period in 2025, across more than 80 transactions, representing a 20% rise year-on-year. Total take-up for the first half of the year reached 195,000 sq m, up 29% from the 150,000 sq m recorded in the first half of 2025.
A key factor was Inditex’s planned development of a major corporate and creative campus in Sant Adrià de Besòs, including an estimated 30,000 sq m of office space, which significantly boosted quarterly activity.
The stability of leasing volumes, combined with an increase in the number of transactions, highlights active and diversified demand, albeit with smaller average deal sizes.
Activity was primarily concentrated in the New Business Areas, which accounted for more than 50% of leased space, followed by City Centre locations (30%), the Periphery (10%), and the CBD (5%).
Quality remains the key decision factor for occupiers. Seventy percent of the contracted space corresponds to high-quality buildings, reflecting the growing preference for efficient, sustainable properties adapted to new ways of working.
From a sector perspective, the market was particularly driven by the industrial sector, which accounted for 40% of total quarterly take-up. This was followed by professional services (20%) and the technology sector (15%).
Prime rents in Barcelona currently stand at €31.75/sq m/month, representing an annual increase of 2%, driven by the limited availability of high-quality space in locations such as Passeig de Gràcia and Avinguda Diagonal. This trend is expected to continue in the coming months, particularly in the city centre and CBD, where supply remains very constrained.
Meanwhile, Barcelona’s vacancy rate has fallen to 9.31%, reinforcing the downward trend observed over recent quarters and increasing pressure on high-quality office space.
Looking ahead, approximately 130,000 sq m of new office developments and refurbishment projects are scheduled for delivery by December 2027. Around 50% of this space is already pre-let, reflecting occupiers’ increasingly proactive strategies to secure future office requirements.
