'One of the mos significant investment deals lately, Paseo de Recoletos 3, has sent a new record for de length of negotiation period an has exceeded the previous records for yield an price / sqm set in recent years. The number of buyers reflects the demand of this type of assets in the market'. (Luis Espadas - Capital Markets Director).

• The near 160,000 sqm that were taken up in the office market in Q2 is more than three times higher than de amount achieved in the same time last year. The figure encourages cautious optimism but it is important to note that nearly 30% of this total is down to three transactions of over 10,000 sqm. As for the first six months of 2010, the 250,000 sqm taken up is double the total for the first six months of 2009.
• The vacancy rate has been rising sincce mid-2007, and for the third consecutive quarter it has reached a historic high. The rate touched 12% in June, driven by the completion of Torre Cristal and the third phase of Parque Empresarial Rivas Futura.
• Rental values are still on the decline, but year-on year changes are becoming more tenuous in every sub-market. Rents in the CBD remain unchanged from the last quarter, at between €28-29/sqm/month.
• Office investment activity is moving steadily forwards thanks to national investors. Between April an June nearly €370 million was invested, a far cry from just €45 million in Q1 2010. The 2010 first-half total is 7% higher than that of 2009. The most demanded assets are prime office buildings in prime locations, such as Paseo de Recoletos 3, despite the fact that yields and values per sqm are way above fair market values.