Standard 5-year lease with 5-year extension option (5+5).

• Typical lease length: 7 years.
• Typical rent-free: 14 months.
• Vacancy: 8.6%; trend rising.
• Standard 5-year lease with 5-year extension option (5+5).

TL;DR

• Typical lease length: 7 years.
• Typical rent-free: 14 months.
• Vacancy: 8.6%; trend rising.
• Standard 5-year lease with 5-year extension option (5+5).

Structure

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 of 3-6 months standard.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

Frequently asked questions

What's a typical lease term in Madrid?

7 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.

How is rent quoted in Madrid?

In EUR/sqft/year. We also publish a USD-normalised view ($42/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

• CBRE Marketview reports — CBRE
• JLL Office Insight — JLL
• Cushman & Wakefield Marketbeat — Cushman & Wakefield
• Savills World Research — Savills
• Colliers Global Office Outlook — Colliers

Full sources index · Submit a correction

Related topics

• Class A Lease Negotiation — How to negotiate a Class A office lease — the playbook from LOI to signed deal.
• APAC Lease Conventions — How APAC office lease conventions differ from US/UK — and how to translate before signing.