Madrid and Barcelona are experiencing a growing disconnect between available supply and the actual needs of occupiers.
The European office market has evolved towards a concentration of demand in high-quality buildings and prime locations. Spain reflects this 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 in Europe corresponded to Grade A space, with 67% concentrated in core locations, reflecting a growing preference for assets capable of meeting companies' new requirements.
However, the supply of this type of product continues to decline. While overall office availability across Europe stands at around 9.7%, the availability of Grade A space falls to just 3.3%, and to 2.8% in prime submarkets. As demand becomes increasingly concentrated within a more specific segment of the market, the future supply pipeline is proving insufficient to replenish this product. 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 needs. Although both markets have a significant volume of office stock, the availability of modern, efficient, and well-located space is becoming increasingly limited, particularly in the most sought-after business districts.
In Madrid, office take-up exceeded 515,000 sq m in 2025, while the availability of Grade A office space in the CBD stands at around 0.5%, one of the lowest levels on record. Furthermore, the volume of new supply expected by 2028 will not be sufficient to meet forecast demand, progressively widening the shortage of high-quality office space.
Barcelona is facing even greater pressure on prime office product within the CBD. Nearly 60% of recent take-up has been concentrated in Grade A space, while the development pipeline expected by 2028 remains significantly below projected absorption levels, creating a structural shortage that could reach 60,000 sq m by the end of 2028.
Our Spain Offices Shrinking Supply report examines how these dynamics are reshaping the office markets in Madrid and Barcelona, and what implications they will have for occupiers, landlords, and investors in an environment where anticipating future space requirements is becoming a key source of strategic competitive advantage.
