NewsThe Volume Of Hiring Of Offices In Malaga Exceeds The Prepandemic Levels

The Volume Of Hiring Of Offices In Malaga Exceeds The Prepandemic Levels

The office rental market in Malaga shows signs of recovery despite the pandemic and its impact on teleworking. In fact, in the first nine months of the year, the contracted area in the Andalusian city reached 17,652 m2, which means reaching a volume higher than prendemic levels , since in 2019 it registered around 12,270 m2, according to CBRE data .

According to the study by the consultancy, Malaga has a total stock of office space of almost 600,000 m2 , with two-thirds concentrated in the Andalusian Technology Park (PTA), 392,733 m2, while the stock in the center reaches 72,392 m2. As for availability, this is around 4.5% for the city as a whole, being less than 2% both in the downtown area and in the CBD. The city has a stock similar to that of Valencia and somewhat lower than that of Seville, but far removed from Madrid or Barcelona .

The city has a stock very far from Madrid or Barcelona
“The lack of promotion of office buildings in recent years, together with the interest that Malaga is generating, especially from technology companies, means that the availability of space is very low, mainly in the most central areas of the city, being the preferred financial center for companies “, says Pelayo Fernández, Associate Director of the CBRE Málaga Office Department.

More surface
The percentage of companies that demand larger surfaces has grown, reaching 37% , compared to 2019 when only 10% of the demands were for surfaces greater than 1,000 m2. Regarding the profile of demanding companies, those in the tech sector are the most active, accounting for 80% of the demand .

In the area with the highest rents in the city, the center continues to position itself, reaching the prime rent of 19 ?? / m2 / month, while the average income in this area is around 17 ?? / m2 / month. It is followed by the CBD, with a maximum rent of € 17 / m2 / month and an average rent of around 14 € / m2 / month. Periferia and PTA are positioned as the lowest rents , “although in the latter they are reaching 12 ?? / m2 / month in the most prime buildings ,” says the study.

In recent years, Málaga has generated great interest among international funds, as evidenced by the transactions of the Málaga Business Park and Alei Center buildings in the PTA, and Eurocomsur and Aries in the CBD, achieving more attractive returns than in markets such as Madrid and Barcelona, ​​according to CBRE. The investment volume transacted between 2019 and 2021 reaches 83 million euros .

“This boom has caused new investors to want to enter the city, either through the promotion of new buildings or the purchase of existing buildings. Factors such as demand exceeding supply, stable rents with growth potential and multinational companies with large projects in Malaga explain this interest on the part of investors “, explains Rosa Madrid, Andalusia Director at CBRE Spain.

A technology hub
The CBRE study highlights Malaga’s position as a technology destination for large multinationals, including Google or Vodafone . This supposes a call effect between different international companies in the tech sector . In this context, flexible spaces are playing a major role due to the flexibility they offer both companies and workers.

The rise of teleworking as a result of the health situation has led companies to rethink the location of their offices and the surface to occupy. Thus, there is a tendency for companies to locate in more central areas, such as downtown and the CBD, leaving behind the PTA and the more peripheral areas.

“Despite the emergence of teleworking, many companies find that innovation and new projects emerge and develop more easily thanks to the personal interaction that takes place in offices. The focus is now on creating healthy workspaces that promote this collaboration and socialization among employees “, says José Mittelbrum, National Director of CBRE Spain Offices, who adds that” the hybrid work model that many companies are adopting must include a framework that allows the company to make use of the offices of optimal shape “.

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