Offices 2018 Madrid and Barcelona
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RESEARCH OFFICES 2018 MADRID AND BARCELONA A year that will be shaped by the political backdrop, mega-deals, the technological revolution and new more- efficient workspaces focused on employee well-being. ECONOMIC TRENDS AND MADRID: OCCUPIER MARKET BACKDROP CHALLENGES A SUPER CITY AND INVESTMENT OFFICES, 2018 RESEARCH ECONOMIC BACKDROP RISING BUSINESS CONFIDENCE REFLECTS INCREASINGLY SOLID ECONOMIC RECOVERY Seventy–five percent of the world’s econ- uation in Catalonia is a major challenge that opinion regarding their business’ Q4 2017 omy is contributing to the current phase of Spain must face head on in 2018. performance, than negative. As a result, the economic growth, with activity levels going So far, the current situation has had a lim- indicator remains positive, and continues to from strength to strength. According to the ited impact on Spain’s economic growth highlight the economic drive of the Catalan IMF, in 2017 the world economy grew by forecasts, however, this could all change if economy and its importance to the Spanish 3.8%, exceeding last autumn’s forecasts by the situation is drawn out even further and a economy as a whole. However, this differ- 0.2 percentage points. The Fund has also favourable solution is not found. ence also narrowed gradually over the year, revised its 2018 and 2019 growth forecasts highlighting the effects of the political insta- up to 3.9%. This upward revision is proof of bility and the drop in tourism that is affecting the favourable financing conditions and the BUSINESS CONFIDENCE businesses. strength of demand, particularly investment AND NUMBER In parallel, the rate at which new businesses and mainly in advanced economies. OF COMPANIES are being created has also been gradually Spain closed 2017 with a growth rate of slowing since summer in Catalonia. In con- 3.1%, a figure which was higher than the Eu- The Business Confidence Indicator (BCI trast, new business creation has been grow- ing in the Madrid Region, breaking above ropean Union average. Although economic hereinafter) is compiled by INE and based the 185,000 barrier in terms of the number of activity is performing extremely well, growth on a survey which asks business owners companies registered with Social Security at will start to ease off slightly over the com- both their opinion of how their businesses the start of 2018. ing years as pent-up demand is gradually have performed in the previous quarter and placed and oil prices start to edge up. their expectations for the upcoming quar- ter. The BCI is the difference between the Against this favourable economic backdrop, percentage of favourable and unfavourable GRAPH 2 the European Central Bank has announced responses. No. Social Security registrations that it plans to gradually ease the monetary 2016 January = 100 The positive trend seen in the Indicator stimulus. In fact, it has already started to in recent years is a sign of the economy’s wind down its debt purchasing programme, solid recovery. Catalonia and Madrid usu- which - once sufficiently reduced - is ex- ally register higher values than the country 107 pected to lead to slight interest rate in- as a whole, given that they are the pow- 105.73 creases. 106 erhouses of the Spanish economy. More The uncertainty surrounding the political sit- Catalan business owners have a favourable 105 104 103 GRAPH 1 Business Confidence Index 102 Compiled using the survey completed among business owners, regarding the previous quarter’s performance. 101 100 30 SPAIN CATALONIA MADRID “ 99 20 The positive trend seen 10 98 0 in the Business Confidence -10 -20 JUL 2016 JUL 2017 JAN 2016 JAN 2017 SEP 2016 SEP 2017 NOV 2016 NOV 2017 MAY 2016 MAY 2017 MAR 2016 MAR 2017 Indicator in recent years -30 -40 is a sign of the economy’s -50 Spain Madrid Catalonia solid recovery Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Linear (Madrid) Linear (Catalonia) “ Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Source: INE Source: Ministry of Employment and Social Security 2 3 OFFICES, 2018 RESEARCH OFFICES: A SPACE FOR LIVING, NEW TECHNICAL A SPACE IN WHICH TO GROW REQUIREMENTS SUSTAINABILITY For several years now, more and more com- to and from work and therefore increases their ious contrasting ambiences designed to moti- Buildings designed to maximise the use panies have been incorporating new ways of level of satisfaction and their overall productiv- vate employees and offer a “look and feel” that of natural light and the sun’s natural path, working into their offices in order to increase ity; hence it is a must. Creating an environment drives their creativity. Other key characteristics artificial lighting to be used solely in the employee satisfaction, improve their productiv- in which employees want to spend time once include incorporating of recreational elements, absence of natural light, solar panels, ity and redefine their relationship with the work- they have finished their working day (areas features and furnishings that are more typically rainwater collection systems, large win- space. These new ways of working are based with multiple leisure options, parks and green associated with homes than offices, as well as on collaborative models involving: multi-discipli- spaces) is a requirement for many occupiers. wide-ranging and customised food options. dows that react to the weather in order to nary teams; more democratic decision-making maintain an optimal temperature, by either Now, in what has become known as the Fourth Offering an office space that meets employ- processes; results-based performance assess- minimising energy loss or even generat- Industrial Revolution, in which the development ees’ current expectations and allows them to ments for employees; working from home; and ing additional energy, reusable construc- greater flexibility. of robots, virtual and augmented reality and arti- develop both on a professional and personal tion materials that do not affect people’s ficial intelligence are becoming ever more com- level will be key for improving employee pro- When it comes to selecting a workspace, loca- health or the environment, as well as recy- monplace, work done by people must become ductivity and attracting and retaining talented tion is one of the most important factors for oc- cled and biodegradable products. increasingly innovative and capable of adapt- professionals. If companies want to offer their cupiers. Securing a particular location or area ing, whilst workspaces must become far more gives a company visibility and has become a employees the ideal space, they will have to be inspiring places. key factor for retaining talented professionals. prepared to pay a higher price per sqm, mean- The trend is for people’s workplaces, homes Employees have become the focal point, and ing their programmes for attracting and retain- and where they spend their leisure time to all be their well-being the number one target. To ing talent must be closely aligned with their cost within close proximity of one another. A central achieve this, spaces must offer a wide variety structures. One way of doing this is to ensure a DIGITAL TRANSFORMATION SURROUNDINGS or excellently-connected location reduces the of amenities to make employees’ lives as easy more efficient use of space and adopt systems AND ACCESSIBILITY time that employees need to spend travelling as possible. Offices must offer spaces with var- such as hot-desking. Technological progress is fast-mov- ing, and offices today must be at the Buildings surrounded by natural and green forefront of new developments both spaces, and that encourage the use of a in terms of connectivity and com- wide range of transport options by offer- munications. However, in the not too ing specific parking spaces and recharg- distant future this will no longer be ing points for electric vehicles and bicycle Flexibility enough. Within just a few years, we parking, even reducing the number of tradi- will not be talking about smart build- tional car parking spaces available. is the key ings capable of regulating overall Companies are starting to champion the FLEXIBLE SPACE FLEXIBLE TERMS energy and water consumption, but cycling option by installing showers and COMFORT rather cognitive buildings that incor- Today, more and more companies need Changing the lease length or other paying employees who travel to and from AND QUALITY to be able to temporarily increase the terms and conditions is becoming in- porate natural language and machine work on their bicycles per kilometre cycled. amount of space they occupy in order to creasingly important if companies are learning processing systems that col- Flexible spaces that can be accommodate extra employees. This flex- to adapt their office spaces to the new lect data and analyse interaction be- adapted to meet the needs of ibility is vital in companies that are either needs. Also, we will start to see shorter tween employees in a building. Data commissioned on a project by project lease terms as a result of the new IFRS any given moment, lighting that generated by sensors will be collected basis - especially if they are projects with 16 accounting standards that will come can be controlled by each em- very specific needs that require employing into force in January 2019, and which and analysed, natural language pro- ployee, climate control, all de- professionals on an ad-hoc basis - or that will classify future term certain rental cessing will allow occupiers to access signed to maximise employees’ belong to rapidly growing sectors. payments as3 part of a company’s debt. all the building’s services by merely well-being. Architecture and de- 1 speaking out loud, images and videos sign are aligned to provide ex- will be analysed and allow occupiers tensive and welcoming spaces. TECHNICAL AND to see all the building’s features and TECHNOLOGICAL FLEXIBILITY Furnishings that create a homely FLEXIBLE LAYOUT interact with them.