London ($121/sqft, 8.6% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: London on talent depth and Madrid on rent and tax.
London ($121/sqft, 8.6% vacancy) and Madrid ($42/sqft, 8.6% vacancy) compete on different axes: London on talent depth and Madrid on rent and tax.
| Metric | London | Madrid |
|---|---|---|
| Region | EMEA | EMEA |
| Country | United Kingdom | Spain |
| Class A rent (USD/sqft/yr) | $121 | $42 |
| Class A rent (local) | 95 GBP | 38 EUR |
| Vacancy | 8.6% | 8.6% |
| Trend | rising | rising |
| Prime yield | 4.5% | 4.6% |
| Premium flex / seat / month (USD) | $1,380 | $780 |
| Submarkets covered | 7 | 5 |
| Corporate tax | 25% | 25% |
| Metric | London | Madrid |
|---|---|---|
| Typical term | 10 yrs | 7 yrs |
| Typical rent-free | 24 mos | 14 mos |
| Lease norms | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. | 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 | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. |
| Metric | London | Madrid |
|---|---|---|
| Talent index (0–100) | 96 | 78 |
| Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. |
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
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.
London has the deeper talent index (96/100 vs 78/100).
Tax rates are tied.
London typical term is 10 years with 24 months free; Madrid runs 7 years with 14 months free.
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. 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 London, 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.