The gross take-up volume in Q4 (close to 105,500 sq m) is the best record since the market felt the impact of the pandemic. In terms of number of transactions, the 109 deals represent 60% more than the average of the last quarters, and more than double the just over 50 that took place in Q2 and Q3 2020.

In the annual calculation, 2021 ended with close to 330,000 sq m, almost double the 170,000 sq m of 2020, and above the 301,000 sq m average annual volume in the historical series.

The increase in take-up was due to three megadeals (≥10,000 sq m) that took place in the second half of the year and accumulated 61,000 sq m (around 20% of the total). Discarding these deals, the resulting figure would place the increase at 68% compared to the 2020 volume without another deal of >10,000 sq m.

In terms of number of transactions, the year-on-year increase of 31% leaves no room for doubt: the market is moving steadily towards recovery.

Activity by Market Zone

The New Business Areas (NBA) regained the prominence they lost in 2020. In 2021, they accumulated just over 139,000 sq m across 81 transactions, accounting for 42.5% of take-up and 24% of the number of registered transactions. Within the NBA, 22@ comprised 74% of take-up (>100,000 sq m), i.e. almost four times more than the mere 28,000 sq m recorded in 2020.

It is worth noting that five of the six deals of >4,000 sq m in 22@ took place in recently delivered new buildings or properties currently under development that will enter the market in the coming months. Despite the upturn in available supply in the Barcelona office market, new developments and projects under construction are an excellent alternative for occupiers looking for large spaces in buildings that meet the highest quality standards.

Prime CBD and City Centre had a reduced presence in terms of take-up volume. In 2021, they accounted for 35% between them, while in 2020 this figure was 44%. In terms of deals, however, they remained stable. Nevertheless, the average deal size rose slightly thanks to the recovery in take-up figures. Both areas stood at around 600 sq m compared to around 500 sq m in 2020.

Flexible Offices

During the months of lockdown, the imminent end of the office was declared. Today, it seems more than evident that this prediction will not come true, although it cannot be denied that the ongoing unprecedented situation has accelerated changes in the way of working and the traditional office model.

It is increasingly common for companies of different sizes to opt for workstations in flex centres, generally in enclosed spaces, where they find all the comforts of a traditional office in a desired location and for a shorter period of time than is usual in the traditional market.

2021 ended with nine deals signed by flex operators, with an additional 11,600 sq m in the Barcelona office market. This represents 4% of total take-up and falls short of the 18% registered in 2019 but is up from the 1% posted in 2020.

The focus of operators continues to be on the NBA and City Centre. The largest transaction (3,900 sq m) was led by IWG which, under the Spaces label, will open a new centre on Via Augusta. IWG is also expanding its Regus centre on Gran Via de les Corts Catalanes (near Plaza de Catalunya) by 1,150 sq m.

Rents

All areas maintained the levels of the previous quarter, although in the y-o-y comparison Prime CBD contracted by 2.7% and Prime NBA (Glòries submarket in 22@) by 1.1%. It should be noted that the increase in availability has slowed rents in certain assets, which given the scarcity of supply, recorded higher values. Under the current circumstances, this would correspond to higher quality buildings.