Madrid and Barcelona are experiencing a growing mismatch between available supply and the real needs of occupiers.
The European office market has evolved towards a concentration of demand in high-quality buildings and prime locations. Spain reflects the same trend.
Over recent years, the European office market has evolved towards a clear concentration of demand in high-quality buildings and prime locations. In 2025, 52% of all office take-up across Europe corresponded to Grade A space, while 67% of absorption was concentrated in core locations, reflecting a growing preference for assets capable of meeting companies’ changing requirements.
However, the supply of this type of product continues to shrink. While overall availability across Europe stands at around 9.7%, the availability of Grade A office space falls to 3.3%, dropping further to 2.8% in prime submarkets. As demand becomes increasingly concentrated within a more specific segment of the market, the pipeline's ability to replenish this supply remains insufficient. Between 2026 and 2028, Europe is expected to face a potential shortage of nearly 8.9 million sq m of high-quality office space.
Spain clearly reflects this same trend.
Madrid and Barcelona are experiencing a growing disconnect between available supply and occupiers’ actual requirements. Although both markets have a significant volume of office stock, the effective availability of modern, efficient and well-located space is becoming increasingly limited, particularly in the most sought-after business districts.
In Madrid, take-up exceeded 515,000 sq m in 2025, while Grade A office availability in the CBD stands at around 0.5%, one of the lowest levels in the market. Furthermore, the volume of new supply expected by 2028 will not be sufficient to meet forecast demand, progressively widening the shortage of quality space.
Barcelona is facing even greater pressure on prime product. Nearly 60% of recent take-up has been concentrated in Grade A space, and the development pipeline expected through to 2028 remains significantly below projected absorption, creating a structural shortage that could reach 59,000 sq m by the end of the analysed period.
Our report Spain Offices Shrinking Supply analyses how these dynamics are reshaping the Madrid and Barcelona office markets and the implications for occupiers, landlords and investors in an environment where anticipation is becoming a strategic source of competitive advantage.
