What is the average Class A rent in Madrid?

Around 38 EUR/sqft/yr ($42 USD) across the broader Class A index. Trophy submarkets like Castellana & AZCA command 20–40% above that.

How many months of rent-free are normal in Madrid?

14 months on a 7-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Madrid?

The Madrid Class A market is currently rising. Vacancy is 8.6%, which sets the negotiating context.

Headline Class A rent in Madrid is around 38 EUR/sqft/yr ($42 USD), with 14 months of typical rent-free on a 7-year term.

Headline Class A rent: 38 EUR/sqft/yr ($42 USD).
Trophy submarket rents (Castellana & AZCA) push to roughly €45/sqft/yr · ≈ $48.6 PSF/yr USD.
Typical concessions on a 7-year deal: 14 months free rent.
Vacancy stands at 8.6% — market trend is rising.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Madrid Class A office rents and incentives

Headline Class A rent in Madrid is around 38 EUR/sqft/yr ($42 USD), with 14 months of typical rent-free on a 7-year term.

TL;DR

Headline Class A rent: 38 EUR/sqft/yr ($42 USD).
Trophy submarket rents (Castellana & AZCA) push to roughly €45/sqft/yr · ≈ $48.6 PSF/yr USD.
Typical concessions on a 7-year deal: 14 months free rent.
Vacancy stands at 8.6% — market trend is rising.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Madrid are quoted in EUR per sqft per year. Across the broad Class A index the figure is 38, but the trophy tier in Castellana & AZCA reaches roughly €45/sqft/yr · ≈ $48.6 PSF/yr USD. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Madrid concessions on a 7-year Class A lease run to 14 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates.

Where rents land by submarket

Castellana & AZCA sits at the top end (~€45/sqft/yr · ≈ $48.6 PSF/yr USD). Méndez Álvaro / Atocha clears around €32/sqft/yr · ≈ $34.6 PSF/yr USD as the prime tier. Las Tablas & Arroyofresno represents the value end at ~€28/sqft/yr · ≈ $30.2 PSF/yr USD. The full submarket map is on the Madrid city page.

Key facts

city	Madrid
country	Spain
region	EMEA
classARentLocal	38 EUR/sqft/yr
classARentUsd	$42/sqft/yr
vacancy	8.6%
typicalLeaseYears	7
typicalRentFreeMonths	14
submarkets	5
primeYieldPct	4.6%
trophyRent	€45/sqft/yr · ≈ $48.6 PSF/yr USD
primeRent	€32/sqft/yr · ≈ $34.6 PSF/yr USD

Frequently asked questions

What is the average Class A rent in Madrid?: Around 38 EUR/sqft/yr ($42 USD) across the broader Class A index. Trophy submarkets like Castellana & AZCA command 20–40% above that.
How many months of rent-free are normal in Madrid?: 14 months on a 7-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Madrid?: The Madrid Class A market is currently rising. Vacancy is 8.6%, which sets the negotiating context.

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

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