Frankfurt ($60/sqft, 8.4% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: Frankfurt on talent depth and Madrid on rent and tax.
Frankfurt ($60/sqft, 8.4% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: Frankfurt on talent depth and Madrid on rent and tax.
| Metric | Frankfurt | Madrid |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Germany | Spain |
| Class A rent (USD/sqft/yr) | $60 | $42 |
| Class A rent (local) | 55 EUR | 38 EUR |
| Vacancy | 8.4% | 8.6% |
| Trend | flat | rising |
| Prime yield | 4.4% | 4.6% |
| Premium flex / seat / month (USD) | $1,080 | $780 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 30% | 25% |
| Metric | Frankfurt | Madrid |
|---|---|---|
| Typical term | 7 yrs | 7 yrs |
| Typical rent-free | 9 mos | 14 mos |
| Lease norms | German leases run 5-10 years with break rights. Rent reviews are indexed to the CPI (Verbraucherpreisindex). Tenant pays Nebenkosten (operating costs) on top of base rent. Cautio (security deposit) of 3-6 months is typical. | 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. |
| Tax note | Combined federal + state + Gewerbesteuer (trade tax) effectively 30% in Frankfurt. | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. |
| Metric | Frankfurt | Madrid |
|---|---|---|
| Talent index (0–100) | 88 | 78 |
| Talent note | Deepest banking-and-regulatory talent pool in continental Europe. Average all-in compensation indexes 88. | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. |
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE.
Madrid: 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.
Madrid is the cheaper Class A market on a USD basis.
Frankfurt has the deeper talent index (88/100 vs 78/100).
Madrid has the lower headline corporate tax (25% vs 30%). Local incentives can change the effective rate materially.
Frankfurt typical term is 7 years with 9 months free; Madrid runs 7 years with 14 months free.
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE. Madrid: 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.
Score Frankfurt, Madrid and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.