--- title: "Madrid Class A Office Market" description: "Iberian peninsula's deepest premium office market." canonical: https://classa.info/cities/madrid pageType: city lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Madrid Class A office rents around €38/sqft/yr · ≈ $41 PSF/yr USD, with 8.6% vacancy and 14 months of typical rent-free on a 7-year term. ## TL;DR - Castellana axis anchors trophy demand. - Cuatro Torres delivered the largest contiguous trophy floor plates in Spain. - Lease structure is the standard Spanish 5+5 with break rights. - Concessions 12-18 months free on a 10-year deal. - ESG (LEED / BREEAM) is now standard for new build. # Madrid Class A Office Market *Iberian peninsula's deepest premium office market.* ## TL;DR - Castellana axis anchors trophy demand. - Cuatro Torres delivered the largest contiguous trophy floor plates in Spain. - Lease structure is the standard Spanish 5+5 with break rights. - Concessions 12-18 months free on a 10-year deal. - ESG ([LEED](/glossary/leed) / [breeam](/topics/esg-leed-tenants)">BREEAM) is now standard for new build. ## Overview Madrid's premium office market splits between Castellana — the historic CBD spine — and the Cuatro Torres / Las Tablas decentralized [Class A](/glossary/class-a) clusters. The Castellana axis anchors trophy demand; the decentralized clusters offer modern Class A at material discounts. ## Market snapshot | Class A rent | 38 EUR/sqft/yr (41.040000000000006 USD)| | Vacancy | 8.6%| | Typical lease length | 7 years| | Typical rent-free | 14 months| Composite Q1 2026 Madrid CBD + decentralized reports. ## Lease norms Standard 5-year lease with 5-year extension option (5+5). Rent indexed to CPI annually. Service charges billed separately. Tenant typically pays IBI (real estate tax) and basura (waste tax). [Bank guarantee](/glossary/bank-guarantee) of 3-6 months standard. ## Transit & access Madrid Metro covers all Class A clusters. AVE high-speed rail to Barcelona, Valencia, Seville, and Lisbon. Madrid-Barajas Airport is 12-25 minutes from CBD by Metro. ## Tax Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. ## Talent Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. ## Notable Class A buildings - **Torre Caleido (Cuatro Torres)** [](https://www.google.com/maps/search/?api=1&query=Torre%20Caleido%20(Cuatro%20Torres)%2C%20Paseo%20de%20la%20Castellana%20259D%2C%2028046%20Madrid%2C%20Cuatro%20Torres%2C%20Madrid%2C%20Spain&query_place_id=ChIJu3ndd2wpQg0RO5u5GQFMHAc) · Cuatro Torres - **Torre Picasso** [](https://www.google.com/maps/search/?api=1&query=Torre%20Picasso%2C%20Plaza%20de%20Pablo%20Ruiz%20Picasso%201%2C%2028020%20Madrid%2C%20AZCA%20%2F%20Castellana%2C%20Madrid%2C%20Spain&query_place_id=ChIJL9jJTgApQg0R4XsFQQ88RRs) · AZCA / Castellana - **Torre PwC** [](https://www.google.com/maps/search/?api=1&query=Torre%20PwC%2C%20Paseo%20de%20la%20Castellana%20259B%2C%2028046%20Madrid%2C%20Cuatro%20Torres%2C%20Madrid%2C%20Spain&query_place_id=ChIJA_cUpBApQg0ReQf2tmt6lhA) · Cuatro Torres ## Class A submarkets in Madrid - [**Castellana & AZCA**](/cities/madrid/castellana-azca) — The historic CBD spine. (trophy) - [**Cuatro Torres**](/cities/madrid/cuatro-torres) — Spain's largest contiguous trophy floor plates. (trophy) - [**Las Tablas & Arroyofresno**](/cities/madrid/las-tablas-arroyofresno) — Decentralized Class A campus market. (established) - [**A-1 / Las Tablas**](/cities/madrid/a-1-corridor) — Northern back-office and tech corridor. (established) - [**Méndez Álvaro / Atocha**](/cities/madrid/mendez-alvaro) — Southern transport-hub Class A cluster. (prime) ## Madrid deep-dives - [Rents and incentives](/cities/madrid/topics/rents-and-incentives) — What does Class A rent cost and what concessions are typical? - [Sublease market](/cities/madrid/topics/sublease-market) — How deep is [sublease](/topics/sublease-strategy)">sublease availability and how does it price? - [ESG and LEED stock](/cities/madrid/topics/esg-and-leed) — How much certified stock exists and what premium does it command? - [Transit and commute](/cities/madrid/topics/transit-and-commute) — Which submarkets have the strongest transit access? - [Talent and salaries](/cities/madrid/topics/talent-and-salaries) — What does the white-collar talent pool look like and how is it priced? - [Fit-out costs](/cities/madrid/topics/fit-out-costs) — What does a Class A [fit-out](/glossary/fit-out) cost per square foot? - [Flex vs lease](/cities/madrid/topics/flex-vs-lease) — When does premium coworking beat a traditional lease? - [Taxes and incentives](/cities/madrid/topics/taxes-and-incentives) — What corporate, occupancy, and property taxes apply? - [Neighborhoods overview](/cities/madrid/topics/neighborhoods-overview) — Which Class A submarkets exist and how do they compare? - [Notable buildings](/cities/madrid/topics/notable-buildings) — Which trophy assets define the market? - [Class A vs Class B](/cities/madrid/topics/class-a-vs-class-b) — What is the spread between Class A and Class B and why? - [Leasing conventions](/cities/madrid/topics/leasing-conventions) — What lease structures, terms, and concessions are normal? - [Expansion checklist](/cities/madrid/topics/expansion-checklist) — What is the operational checklist for opening here? - [Relocation guide](/cities/madrid/topics/relocation-guide) — How do you move into this market from another city? - [Frequently asked questions](/cities/madrid/topics/faq) — Quick answers to the questions occupiers ask most. - [Operating expenses](/cities/madrid/topics/operating-expenses) — What service charges, OpEx, and pass-throughs apply on top of rent? - [Growth and availability](/cities/madrid/topics/growth-and-availability) — How tight is current availability and what does the pipeline look like? - [Sustainability pathways](/cities/madrid/topics/sustainability-pathways) — How do tenants land net-zero or science-based-target leases here? - [Hybrid work policy](/cities/madrid/topics/hybrid-work-policy) — How are hybrid policies shaping office demand here? - [Security and redundancy](/cities/madrid/topics/security-and-redundancy) — What security, power, and connectivity redundancy are standard? - [Lab and R&D space](/cities/madrid/topics/lab-and-r-and-d) — What does R&D-grade or wet-lab space look like in this market? - [Brand experience](/cities/madrid/topics/brand-experience) — How do trophy buildings function as brand experiences and showpieces? - [Fund strategy and flag](/cities/madrid/topics/fund-strategy-and-flag) — Which submarkets carry the strongest investor flag for funds? - [Exit and renewal](/cities/madrid/topics/exit-and-renewal) — How do you handle a Class A renewal or exit cleanly here? - [Market cycle position](/cities/madrid/topics/market-cycle-position) — Where is this Class A market in its cycle right now? ## Madrid — frequently compared - [**Madrid vs Amsterdam**](/compare/amsterdam-vs-madrid) — EMEA HQ shortlist: Amsterdam vs Madrid. - [**Madrid vs Berlin**](/compare/berlin-vs-madrid) — EMEA HQ shortlist: Berlin vs Madrid. - [**Madrid vs Dubai**](/compare/dubai-vs-madrid) — EMEA HQ shortlist: Dubai vs Madrid. - [**Madrid vs Dublin**](/compare/dublin-vs-madrid) — EMEA HQ shortlist: Dublin vs Madrid. - [**Madrid vs Frankfurt**](/compare/frankfurt-vs-madrid) — EMEA HQ shortlist: Frankfurt vs Madrid. - [**Madrid vs London**](/compare/london-vs-madrid) — EMEA HQ shortlist: London vs Madrid. ## Editorial provenance Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) ## Related topics - [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal. - [**Hybrid Workplace Strategy**](/topics/hybrid-workplace-strategy) — How to size, structure, and lease a Class A office for a hybrid workforce. - [**ESG / LEED for Tenants**](/topics/esg-leed-tenants) — How tenants evaluate, negotiate, and report on ESG performance in a Class A office lease. - [**Cross-border Expansion**](/topics/cross-border-expansion) — How to run a coordinated Class A office search across multiple geographies. - [**Fit-out Capex**](/topics/fit-out-capex) — How to budget, sequence, and govern Class A office fit-out capex. - [**Lease vs Flex**](/topics/lease-vs-flex) — When premium flex (coworking, managed office) beats a conventional Class A lease — and vice versa. --- Citation: Source: Class A Atlas (https://classa.info/cities/madrid), updated 2026-04-15T00:00:00.000Z.