Madrid ($42/sqft, 8.6% vacancy) and Mexico City ($30/sqft, 22.6% vacancy) compete on different axes: Madrid on talent depth and Mexico City on talent depth.
Madrid ($42/sqft, 8.6% vacancy) and Mexico City ($30/sqft, 22.6% vacancy) compete on different axes: Madrid on talent depth and Mexico City on talent depth.
| Metric | Madrid | Mexico City |
|---|---|---|
| Region | EMEA | Americas |
| Country | Spain | Mexico |
| Class A rent (USD/sqft/yr) | $42 | $30 |
| Class A rent (local) | 38 EUR | 580 MXN |
| Vacancy | 8.6% | 22.6% |
| Trend | rising | flat |
| Prime yield | 4.6% | 7.4% |
| Premium flex / seat / month (USD) | $780 | $380 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25% | 30% |
| Metric | Madrid | Mexico City |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 14 mos | 6 mos |
| Lease norms | 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. | Net leases. 5-7 year terms with renewal options. Free rent of 4-9 months and TI of MXN 1,200-2,200/sqm typical. Most trophy leases are USD-pegged for international tenants. |
| Tax note | Headline corporate tax 25%. Madrid region offers some of Spain's most competitive personal income tax rates. | 30% Mexican corporate income tax (ISR). 16% VAT (IVA). IMMEX (maquiladora) program offers temporary import duty deferrals for export-oriented manufacturing tenants. |
| Metric | Madrid | Mexico City |
|---|---|---|
| Talent index (0–100) | 78 | 78 |
| Talent note | Iberian peninsula's deepest financial-services and tech talent pool. Average all-in compensation indexes 78. | Deep banking, professional services, and engineering talent. Strong feed from UNAM, IPN, ITAM, Tec de Monterrey. Spanish-English bilingual professional base growing rapidly. |
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.
Mexico City: Mexico City Metro (12 lines, the second-largest in the Americas), Metrobús BRT (7 lines), Tren Suburbano. Mexico City International Airport (MEX) connected via Line 4 BRT; new Felipe Ángeles International (NLU) bus-served.
Mexico City is the cheaper Class A market on a USD basis.
Talent indices are tied at 78/100.
Madrid has the lower headline corporate tax (25% vs 30%). Local incentives can change the effective rate materially.
Madrid typical term is 7 years with 14 months free; Mexico City runs 5 years with 6 months free.
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. Mexico City: Mexico City Metro (12 lines, the second-largest in the Americas), Metrobús BRT (7 lines), Tren Suburbano. Mexico City International Airport (MEX) connected via Line 4 BRT; new Felipe Ángeles International (NLU) bus-served.
Score Madrid, Mexico City 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.