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Colliers International | Global Occupier Guide

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Madrid

Gross area*

Space Measurement Standard
SQMT
SQFT
Space Unit of Measure

EUR

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Financial Data Currency

Yes

Transfer Taxes

Notes:

*Gross lettable area is built area as per Spanish town planning regulation (similar to GEA (RICS))

Office Occupier Market Condition

1,1,1

Occupier Market Conditions – How conducive is the regulatory environment to starting and operating a business. Source: Colliers

Labor Cost – Wages for skilled office workers. Source: City Globe and Colliers

Tenant Favorable – Assessment of the real estate market condition for office space. Source: Colliers

Quadrant Legend: Blue = Favorable Medium Blue = Neutral Red = Less Favorable

Typical Loss Factor

18%-25%*

From rentable to useable square meters

Loss Factor Notes:

*18% to 25% of total GLA is the loss corresponding to building lobby, installations, floor lobbies, etc.

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Amount of Fit-Out Concession

€20/sm-€80/sm

Typical range of fit-out contribution.

Fit-Out Cost Notes:

Contribution range 20-100 €/sqm

Rent-Free Period

The Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

0.5mo.-1.5mo.

Typical number of rent-free months.

Rent-Free Period Notes:

months per years of binding lease term

Tenant Rep Broker Fee (New Leases)

The tenant rep broker’s fee is typically split between the Landlord and Tenant.

Payment of Fees/Commissions Notes:

As Negotiated

Tenant Rep Broker Fee (Renewals)

The tenant rep broker’s fee is typically split between the Landlord and Tenant.

Payment of Fees/Commissions Notes:

As Negotiated

Lease Provisions

Lease Term

3yrs.-5yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges

€3.5/sm-€7.5/sm

Estimated range for all additional charges per Square Meters.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

Cleaning and maintenance of common areas security & reception desk, pest control, utilities and supplies for common areas, insurance, property tax, and property management if outsourced by landlord.

Lease Fundamentals: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Requirements Notes:

Security deposit required by law; additional corporate or bank guarrantee typically required by landlord

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

According to Spanish Law the tenant can sublet or assign; however, it is standard market practice to include a clause to avoid this in the lease agreement

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is NOT required.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Break-options must be reflected in lease contract; otherwise the tenant must pay the rent until the next break-option

Workplace

Regional Office Space

8sm-15sm

Typical Square Meters per employee (includes office square footage for employees and contractors).

Desk Sharing

Desk-sharing is not a common practice in the market.

Desk Sharing Average

n/a

Average headcount per workstation.

Industrial Occupier Market Condition

1,1,1

Occupier Market Conditions – How conducive is the regulatory environment to starting and operating a business. Source: Colliers

Labor Cost – Wages for manuafacturing and warehouse/distribution office workers. Source: City Globe and Colliers

Tenant Favorable – Assessment of the real estate market condition for industrial space. Source: Colliers

Quadrant Legend: Blue = Favorable Medium Blue = Neutral Red = Less Favorable

Landlord Concessions

Fit-Out Concession

The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.

Rent-Free Period

The Landlord typically provides a contribution or concession in the form of a rent-free period.

Standard Range of Rent-Free Months

0.5mo.-1.5mo.

Typical number of rent-free months.

Tenant Rep Broker Fee (New Leases)

The tenant rep broker’s fee is typically split between the Landlord and Tenant.

Payment of Fees/Commissions Notes:

As Negotiated

Tenant Rep Broker Fee (Renewals)

The tenant rep broker’s fee is typically split between the Landlord and Tenant.

Payment of Fees/Commissions Notes:

As Negotiated

Lease Provisions

Lease Term

3yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.

Additional Charges:

Utilities
Service Charges
Stamp Duty
Electric
Rates
HST
Cleaning
Hydro
Registration Fees
Taxes
Insurance
VAT
Other

Service Charge Notes:

For multi-tenant logistics parks, some landlords do apply a service charge on top of the rent.



Security, maintenance of external common areas, property tax, and electric supply for external common areas are additional.

Lease Fundamentals: The following apply to both office and industrial leases.

Lease Execution Requirements:

Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable

Requirements Notes:

Security deposit required by law; additional corporate or bank guarrantee typically required by landlord

Negotiated Subletting/Assignment

Typically, the tenant's right to sublease or assign the space is negotiated in the lease agreement.
Landlord Consent: Typically, the landlord's written consent IS still required.

Negotiated Subletting/Assignment Notes:

According to Spanish Law the tenant can sublet or assign; however, it is standard market practice to include a clause to avoid this in the lease agreement

Statutory Subletting/Assignment

This IS a statutory right.
Landlord Consent: The Landlord's consent is NOT required.

Blend & Extend Strategies

Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.

Statutory Early Termination

This is NOT a statutory termination right.

Negotiated Early Termination

It is NOT typical for tenants to be able to negotiate an early termination right in the lease agreement.

Early Termination Notes:

Break-options must be reflected in lease contract; otherwise the tenant must pay the rent until the next break-option

Project Management

Section 1. Fit Cost Data

Total Fit-Out Cost

€1200/sm

Class A Office

€800/sm

Class B Office

€500/sm

Class C Office

€400/sm-€450/sm

Warehouse

Total Fit-Out Cost Notes:

The fit-out cost refers to the total cost of design, construction, and installation for a space. It includes categories such as materials, labor, furniture, fixtures, equipment, finishes and other related costs. The specific factors influencing the total fit-out cost can vary widely depending on the project scope, location, size of the space, quality of materials, and complexity of design.

Furniture Cost

€200/sm

Class A Office

€180/sm

Class B Office

€120/sm

Class C Office

€110/sm

Warehouse

Furniture Cost Notes:

These costs are typically paid by the client.

Floor Covering Cost

€90/sm

Class A Office

€60/sm

Class B Office

€40/sm

Class C Office

€35/sm

Warehouse

Floor Covering Cost Notes:

These costs are typically paid by the client.

Partitioning Walls Cost

€220/sm

Class A Office

€130/sm

Class B Office

€120/sm

Class C Office

€100/sm

Warehouse

Partitioning Walls Cost Notes:

These costs are typically paid by the client.

Other (IT/etc) Cost

€80/sm

Class A Office

€70/sm

Class B Office

€55/sm

Class C Office

€50/sm

Warehouse

Other Cost Notes:

These costs are typically paid by the client.

Construction to Move-in Cycle Time

16wks-18wks

Class A Office

14wks-16wks

Class B Office

12wks-14wks

Class C Office

10wks-12wks

Flex Office / Warehouse

Typical Manpower Hourly Rates

€85/hr

Programme Manager

€100/hr

Senior Project Manager

€85/hr

Project Manager

€70/hr

Junior Project Manager

€50/hr

Project Assistant

€80/hr

Workplace Consultant

€80/hr

Designer/Architect

€120/hr

Real Estate Expert

€150/hr

Change Manager

Project Management Base Fee

5%

Base fee [%] for the fitout of above office of 1000 m2.

Section 2. Scope of Work Description

Phase 1: Services Before and During the Transaction

Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Advise Colliers broker and client on project issues and their resolution as they occur.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop high-level project estimate and timeline based on test fit and Client standards
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Define workplace strategy for client, research what kind of location, office / work environment accelerates business
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Define program of requirements for location, building and interior characteristics
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiation of technical agreements in the lease contract + hand over inspection and agreement
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 1 Notes:
Not a detailed and full building technical due diligence. Mainly focused on the fulfillment of key regulations that could jeopardize the obtaintion of the Tenant´s licenses and permits as well as the flexibility of systems to allocate client´s layout and fit out works.

Based on cost ratios per m2 of similar fit-out projects.

General opinions and strategies. Full Workplace Strategy advice is to be provided at an additional cost. We have in-house capabilities.

General definitions.

Yes when possible. Depends on the profesionality and structure of clients.

Phase 2: Service Before and During the Design Process

Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Define interior guidelines for architect based on workplace strategy
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Control workplace strategy and functionality and during design process
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Architectural design
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 2 Notes:
We intend to provide all services in-house and under our contract of services.

General opinions and strategies. Full Workplace Strategy advice is to be provided at an additional cost. We have in-house capabilities.

Phase 3: Services Before Construction

Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 3 Notes:
All this applies for Project Management or Construction Management. Additionally, on Design & Build services Colliers will act as the General Contractor, nonetheless clients or landlords may require that specific subcontractors be selected and appointed to carry out certain works (Fire protection, HVAC works, etc). In other cases clients ask for Managing Contracting services. By means of this system every construction package will be procured in the market and subcontractors selected under an "open book" strategy and Colliers will apply a General contractor cost and benefit % on top.

Phase 4: Services During Construction

Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Oversee the punch list process to ensure acceptable completion of all items.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Coordinate value/engineering process, if required.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Provide as-built drawings and O&M Manuals to Client FM Operations team
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor one year guarantee period and final hand over
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 4 Notes:
All this applies for project and Construction Management contracts. Additionally, on Design & Build services Colliers provides all these services, reporting and documents but in a more protective way.

Additional Services: Services During Relocation

Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Represent Client in development of move strategy.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor development of move activity checklist.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Represent client on site during move process.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Additional Services Notes:
Depending on the size and complexity of the project these services may be contracted and paid separately

Additional Services: Project Management Services Related to Furniture/Workstation Procurement

Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Change management before, during and after moving to the new work environment
Not typically included at all, but available for an additional fee.
Measuring/monitoring (KPI's) how the way of working and building accelerates business and goals of the client
Not typically included at all, but available for an additional fee.
Additional Services Notes:
General opinions and strategies. Full Workplace Strategy advice to be provided with additional cost. We have in house capabilities. For Change Management we are assisted by JanJaap and his team (EMEA Workplace Advisory).

Operating Environment Rankings reported on a scale of 1 (least favorable) to 10 (most favorable).

Human Capital

6, 4 6/10

Labor Force Growth
Labor force growth rate (past 5 years)

5, 5 5/10

Wage Inflation
Rise in wages (past 5 years, local currency)

5, 5 5/10

Millennials
Proportion of population in the age 20-39 cohort


6, 4 6/10

High School Education Equivalent
Proportion of population attaining this level

5, 5 5/10

University Education Equivalent
Proportion of population attaining this level

6, 4 6/10

Overall Education
Composite average of High School & University


6, 4 6/10

Human Capital Composite

Business Climate

5, 5 5/10

Innovation
Presence of innovative factors in economy

7, 3 7/10

Economic Risk
Resilience of economy to unexpected events

6, 4 6/10

Business Environment
Friendliness of business environment

4, 6 4/10

Corporate Tax Rate
Favorable corporate tax rate


6, 4 6/10

Business Climate Composite

Operating Environment Composite

6, 4 6/10

Combined average score of Human Capital and Business Climate factors

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).

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