A guide to private serviced offices, furnished and managed offices and office space for rent in Madrid, as well as general information that may be useful if you are considering renting office space in the city.
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History & Geography
The capital of Spain and the country’s largest city is one of the best-known metropolises in the world. Madrid is located almost in the exact centre of the country, on the Manzanares River, and near the massive Lozoya River. The city spans approximately 560 square kilometres and is the second-largest in the EU after Paris. Madrid grew from a Roman settlement in the 2nd century BC and was originally named ‘Matrice’ in reference to the Manzanares River. After the demise of the Roman Empire, the settlement was occupied by the Sueves, Vandals, and Alans in turn. In the 7th century, Spain was conquered by Arabs from North Africa and was renamed ‘Mayrit’, an Arabic term for ‘trees’. The modern name Madrid is derived from this. In the 9th century, Emir Muhammad I of Cordoba built a giant fortress in Madrid, and the settlement grew into a thriving town. In 1085, Madrid was conquered by Christian forces and became part of the Kingdom of Castile. Madrid continued to grow rapidly and, in 1188, formally became a city.
By the late 16th century, the city had over 30,000 inhabitants, and Phillip II of Spain decided to base his court permanently in Madrid. During the War of the Spanish Succession, Madrid supported Philip of Anjou, who was crowned Philip V of Spain in 1700. Madrid was the site of widespread bloodshed during the Napoleonic Wars, when the city’s residents revolted against the French troops stationed there. The massacre which followed is represented in the artist Goya’s paintings.
During the Spanish Civil War in the 1930s, Madrid was occupied by Republican forces and was heavily bombed. In the latter half of the 20th century, Madrid grew rapidly, and its economy boomed, especially in the 1960s and 70s. Today, the city is one of the premier capitals of Europe and a hub of industry, technology and culture.
Economy
Traditionally, Madrid’s economy was based on the city’s administration and on craftsmen and manufacturing. However, today the city’s economy has changed, and a number of industries are driving Madrid’s prosperity. Like many of its fellow European capitals, Madrid has experienced very strong growth in the service industry. These industries include transport and communication, financial services, and real estate.
Madrid is the 25th-largest city economy in the world by GDP, and in 2024 it recorded a GDP of €181.28.
The Kearney Global City Index (GCI) 2024 ranked Madrid as Europe’s 3rd most influential city, and the Monocle Quality of Life Survey 2024 ranked Madrid 5th globally in terms of quality of life.
The relatively recently constructed ring roads, new housing, and the Barajas Airport are all central to Madrid’s economy and its ranking as one of the most important financial and commercial centres in Europe and the world.
Tourism & Culture
Madrid does not have quite the tourism industry that its counterpart, Barcelona, has, but it is nevertheless a popular destination for tourists in Europe and the world, attracting over several million visitors each year.
International tourism spending in Madrid grew 71 per cent between 2019 and 2025. The city welcomed 11.2 million tourists in 2025, generating a record €17.896 billion in international tourism spending.
The city is renowned for its art scene and has some of the best art museums in the country. Primary among these is the Golden Triangle of Art, consisting of three museums on the Paseo del Prado – the Prado Museum, the Thyssen-Bornemisza Museum, and the Reina Sofía Museum.
Madrid is also known for its excellent nightlife. The city has a wealth of tapas bars, cocktail lounges, jazz bars, restaurants and clubs. Among the most popular neighbourhoods for going out in the city are Atocha, Alonso Martinez, Bilbao, Malasaña, and Tribunal. Malasana is known for its bohemian culture, cafes, and galleries.
Many tourists come to Madrid to attend a bullfight at the Plaza de Toros de Las Ventas. The stadium has a seating capacity of 25,000. The bullfighting season begins in March and ends in October. Of course, the city is also known for its football, with the premier team being Real Madrid, which plays at the legendary Santiago Bernabéu Stadium.
Transportation
As one would expect of a city of its stature, Madrid has a highly advanced transportation system. The city is served by the Adolfo Suárez Madrid-Barajas Airport, which saw over 50 million passengers in 2022, down from 62 million in 2019, and served a record 68 million passengers in 2025, representing a 3 per cent increase on 2024’s total.
The airport is located approximately five miles from Madrid’s city centre and is reachable by the metro. The metro itself is one of the largest such systems in the world, with 176 miles of lines. It is the second longest in Europe after London. Madrid is also well served by buses and taxis. Spain’s high-speed rail network, Renfe, also serves Madrid.
Office space for rent in Madrid
When we first published this report in 2013, Madrid’s office space vacancy rate was 12 per cent, a marked increase from the previous year.
This change was primarily driven by occupiers downsizing after the Great Recession. There was not a great deal of speculative supply due to come onto the market at the time, and there was not likely to be any in the years ahead.
The prime office rent was €290.88 per square metre per year at that time.
The Spanish financial system had undergone a series of reforms, and new regulations had been introduced. It was expected to restore confidence in the Spanish market and boost the overall rental and property markets.
In 2022, 500,000 square metres of office space was let in Madrid, a 40 per cent increase from 2021, indicating a positive recovery following the pandemic.
Vacancy rates at the end of 2022 stood at 11.5 per cent, which was lower than 2021’s 12 per cent.
In 2022, prime office rents stood at €402 per square metre per year.
It was expected that prime rents would continue to grow at approximately 3 per cent YOY from 2021, increasing throughout 2023 and beyond.
In 2026, Cushman & Wakefield reported that take-up by way of office lettings in Madrid exceeded 517,000 square metres, which was below 2024’s circa 570,000 square metres.
However, the average office deal size in 2025 was 1,108 square metres, up 7 per cent from the previous year.
This was due to some large deals completing throughout the year, such as The Instituto de Empresa (IE Business School) acquiring 14,000 square metres at Castellana 278, ICEX signing a lease for 12,000 square metres at Dune, and Ericsson agreeing to rent 13,400 square metres across six floors at the Madnum Méndez Álvaro complex.
As seen in other office markets around the world, a flight to quality was observed, with strong demand for high-quality office space and flexibility, with A/B+ office buildings accounting for 70 per cent of deals.
Vacancy rates for best-in-class space in submarkets within the M30 ring road were below 2 per cent, although overall vacancy rates were 9.11 per cent at the end of 2025.
In Q4 2025, prime office rents in Madrid’s CBD stood at €43 per square metre per month (€516 per square metre per year).
Like in other major office markets in Europe and globally, the flexible office space and workspace sector in Madrid continues to grow. Office providers and flexible workspace operators, including Cloudworks, First Workplaces, Ibercenter, Impact Hub, Lexington, Monday, One CoWork, Regus, Signature, Spaces, The Underground Den, Utopicus, and WeWork, offer a growing range of agile alternatives to traditionally rented office space that are becoming increasingly popular with companies of all sizes from all sectors.
These alternatives to leased offices include private serviced offices, fitted, furnished and managed offices and coworking solutions. They offer business space on flexible short-term contracts that offer options to upsize or downsize floor space in line with changing business needs; they require little or zero CAPEX, and they are available on all-inclusive rental terms, meaning that overheads are fixed as the monthly fee covers items such as cleaning, furniture, reception services and utilities.
These flexible office and workspace options are available in a range of office building types in a number of locations across Madrid, including AZCA, Barrio Salamanca, Calle de Alfonso XII, Calle de Fernando el Santo, Calle de Velázquez, Calle Jose Abascal, Calle Lopez de Hoyos, Calle Piamonte, Calle Serano, Carrera de San Jerónimo, Francisco Silvela, General Perón, Gran Via, Manoteras, Paseo de la Castellana, Paseo de la Habana, Paseo de Recoletos, and Pinar de Chamartín.
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