Madrid is a thriving metropolis which accounts for 19.4% of Spain's gross domestic product and which has outperformed Spain in GDP over the last decade.

With more than 550,000 companies, nearly 20% of the national total, the city’s economy is predominantly service-based. The largest companies from the business, financial and technology services sector are headquartered in the capital.

The Madrid office market, one of the largest of the European Union with over 15 million square metres of office space, is in constant evolution as it responds and adapts to corporate needs. Interesting new renovation and construction projects are making Madrid an increasingly attractive investment location with several hotspots across the different submarkets.

The central business district of Madrid covers the areas adjacent to the Paseo de la Castellana, a key axis that crosses the capital from south to north, and houses some of the most emblematic office buildings in the capital like Torre Picasso, Puerta de Europa and Cuatro Torres. This is the most sought-after office location for companies looking for presence and image. First-class companies such as Deloitte, Accenture and Google are concentrated in the “Azca” area which has more than 470,000 square metres of office space.

Several refurbishments have taken place over the past year that have improved the quality of the existing stock. El Corte Inglés, Spain’s leading department store, will build a new office building, Castellana 69, in an undeveloped plot in Azca that was an open-air car park. The British architecture studio Heatherwick has been selected to work on the building, which will boast significant sustainable design, including solar panels and a courtyard with plants. Construction for this speculative 15,000-square-metre office building will start in early 2022 and is due to complete in 2024.

The Azca area is undergoing a renovation project designed by the New York architecture firm Diller Scofidio and Renfro and promoted by Renazca, a private company set up in 2020 by its main landlords to revitalise the area and transform it into a vibrant new place for social coexistence and business in Madrid. The project will put strong emphasis on the accessibility, open space and sustainability, with green areas, water features and pedestrian routes. Constructions works are expected to start by the end of next year.

An extension of the central business area to the north is planned with the Madrid Nuevo Norte project alongside the iconic Cuatro Torres and close to the existing office areas of Las Tablas, Sanchinarro and Manoteras.

This urban development will be integrated with one of the key transport hubs in the city, Chamartín railway station, which operates suburban and long-distance trains and will include a new residential area and a business district, similar to Canary Wharf in London or La Défense in Paris.

This new extension could be attractive to multinationals and foreign investments as 1.6 million square metres has been allocated for commercial real estate. The project is expected to be developed over a period of 25 years and will start infrastructure works in 2023.

Located in the south of Madrid’s central business district and just a stone’s throw from the major Atocha train station, Méndez Alvaro is another high-demand office district within the M-30 orbital motorway which is undergoing a urban renovation with large developments on the few remaining plots.

The British architectural firm Foster and Partners is leading massive refurbishment works on a historic industrial building to put in place Acciona Ombú, an office building for Acciona, the Spanish sustainable infrastructure and energy company, generating more than 10,000 square metres of new space.

Nearby, the Spanish REIT Colonial is building an office-residential complex with an above-ground area of 90,000 square meters, of which 60,000 square meters will be dedicated to offices, the biggest office complex to be built inside M-30.

This dynamic mixed-use area with plenty of local services has attracted top companies like Repsol and Amazon that have established their headquarters here.

Early this year, Just Eat signed a lease of 7,214 square metres in Ancora 40, a comprehensively refurbished building with an LEED Gold certificate.

Investors are targeting this high potential office area, including Grosvenor, which bought Tintán 8, a building of 10,634 square metres with LEED Gold certification at the end of 2020.

To the east, in the secondary area within the limits of M-40 motorway, the former industrial neighborhood Julián Camarillo is undergoing a restructuring and expansion, thanks to an ambitious plan promoted by Madbit, the area's landlords' association. The plan looks to position this location as the technological hub of the capital.

The area, renamed Madbit in 2019, has become one of the most attractive places for tech, digital and research companies looking for quality and sustainable offices. Its good transport connections, its proximity to the centre and its new office supply are part of its appeal. Madbit has already attracted a number of start-ups and large companies such as General Electric, IBM, 3M, Roche Laboratories and Telefónica.

The project Alcalà 546, which completion is scheduled for next year, will host L’Oréal's headquarters with more than 10,000 square metres. This building and Alcalà 544, were acquired by Amundi Real Estate last year, from BNP Paribas Immobilier Promotion IE and Therus Invest, as part of a forward purchase agreement. The buildings will be LEED B and C Platinum certified on completion and will cover 30,000 square metres.

Another major project under construction is the Building OM Infinity, a high-quality complex of 39,000 square metres with double LEED and Well platinum pre-certification in Julián Camarillo 29-31.

The members of the Madbit association are planning to invest over €300 million by 2025 in refurbishments and sustainable constructions and to launch an ambitious decarbonisation project. The goal is for Madbit to become a smart grid and smart city within the next five years.