# Madrid office fund strategy and flag

> For institutional fund strategies, Castellana & AZCA carries the strongest investor flag in Madrid, with prime yields around 4.6%.

**Canonical URL:** https://classa.info/cities/madrid/fund-strategy-and-flag
**Page type:** city-topic
**Last updated:** 2026-04-15T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- Trophy submarket (Castellana & AZCA) carries the strongest investor flag.
- Prime yield: 4.6%.
- Core funds buy income; value-add buys repositioning of secondary stock.
- Cap-rate spread between trophy and secondary has widened post-2022.

## Key facts
- **city**: Madrid
- **country**: Spain
- **region**: EMEA
- **classARentLocal**: €38/sqft/yr · ≈ $41 PSF/yr USD
- **classARentUsd**: $41/sqft/yr
- **vacancy**: 8.6%
- **typicalLeaseYears**: 7
- **typicalRentFreeMonths**: 14
- **submarkets**: 5
- **primeYieldPct**: 4.6%
- **primeYield**: 4.6%
- **trophyAnchor**: Castellana & AZCA

## FAQ
### Where do core funds buy in Madrid?
Trophy submarket — Castellana & AZCA — and the most defensible long-WAULT assets within it.

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Citation: Source: Class A Atlas (https://classa.info/cities/madrid/fund-strategy-and-flag), updated 2026-04-15T00:00:00.000Z.