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8 PROPERTY REPORT - OFFICE MARKET MADRID AND BARCELONA - Q3 2011 Prime rent evolution €/m 2 /year 450 400 350 300 250 200 150 100 50 €/m 2 /year 600 60 500 45 400 30 300 15 200 0 100 -15 0 -30 2005 2006 2007 2008 2009 2010 2011 Average rents evolution 0 2005 2006 2007 2008 2009 2010 2011 Letting deals by rent 40 35 30 25 20 15 10 5 0 % €/m 2 /year (lhs) QtQ Var. CBD Centre Decentralised Outskirt Q3 2010 Q3 2011 < 10 10 a 12.5 12.5 a 15 15 a 17.5 17.5 a 20 20 a 25 > 25 % €/m 2 /month Source: BNP Paribas Real Estate Research Source: BNP Paribas Real Estate Research Source: BNP Paribas Real Estate Research MADRID 2011 Rent The best offices face a captive demand that grant their rent levels greater resistance to discounts. In this context, prime rents since 2010 have tended to stabilise. At the beginning of 2011 prime rent held steady at the same level as the close of the previous year, but from the second quarter has dropped slightly (-1.8%). In the third quarter prime rent reached €27/m²/month with a new quarterly decline of -1.8%. The outlook for the end of 2011 and early 2012 is for stability. One year ago average rent stood at €17.5/m²/month. At the close of the third quarter of 2011 it was €14.3/m²/month. The reason for the decline is the weak demand, which encourages owners to accept lower rents. This decrease in rent levels is accompanied by incentive schemes (free rent periods and aid for moving expenses) that result in even lower effective rent. Discounts are being applied in all areas, although in the most active and exclusive zones, Centre and CBD, there is not as much pressure. In the most remote areas the owners offer higher discounts and incentives to prevent their tenants from moving to other areas and to attract potential occupiers. In the third quarter of 2011 there were a higher percentage of operations closed below €15/m²/month than one year ago. Rents between €10 and €12.5/m²/month accounted for 36% of take-up, confirming the better bargaining position of the occupants and the opportunities that companies are exploiting. Forecasts point to the maintenance of average rent until the end of the year, although there is still a chance of additional declines in peripheral areas and lesser quality offices. In addition, there will be more attractive prices for the occupiers; the need to offer take-up incentives such as the staggered rents and of grace periods will remain. Quarterly rent levels €/m 2 /year 350 300 250 200 150 100 50 0 Max. Avrg. Min. Madrid Avrg.; 171,7 CBD Centre Decentralised Outskirt Source: BNP Paribas Real Estate Research
Zones The Barcelona offi ce market CBD Centre Decentralised Outskirt Key figures Q3 2001 Offi ce Stock (m 2 ) Vacancies (m 2 ) Vacancy rate (%) Q3 Take-up (m 2 )* Q3 Prime rents (€/m 2 /year) Q3 Average rents (€/m 2 /year) New surface delivered in 2011 (m 2 ) New surface to deliver in 2011 (m 2 ) New surface to deliver in 2012 (m 2 ) * Data analysed and validated by BNP Paribas Real Estate that does not include renegotiations CBD 872,600 74,800 8.6% 5,000 240 186 0 0 0 Centre 2,482,500 179,200 7.2% 12,000 280 165 0 0 0 PROPERTY REPORT - OFFICE MARKET MADRID AND BARCELONA - Q3 2011 Decentralized 1,130,100 237,300 21.0% 12,800 204 165 30,600 0 0 Outskirt 1,084,600 319,900 29.5% 22,800 174 149 9,000 0 0 Total 5,569,800 811,200 14.6% 52,600 - 164 39,600 0 0 9 Source: Research BNP Paribas Real Estate.
Page 1 and 2: PROPERTY REPORT OFFICE MARKET MADRI
Page 3 and 4: BNP PARIBAS REAL ESTATE ALL THE BUI
Page 5 and 6: Economic and offi ce cycle m 2 1,20
Page 7: Vacant surface area break-down 10 8
Page 11 and 12: Vacancy rate % 16 14 12 10 8 6 4 2
Page 13 and 14: MADRID AND BARCELONA Investment Fol

OFFICE MARKET MADRID AND BARCELONA - monitorimmobiliare.it

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