Madrid & Barcelona

Space Measurement Standard

Gross area*

Space Unit of Measure

Square Meters

Financial Data Below Reported In

EUR

Notes:

*Gross Lettable area is Built area as per Spanish town planning regulation (similar to GEA (RICS))
18%-22%*
Typical Loss Factor from Rentable to Useable Square Meters

Loss Factor Notes:

*18% to 22% 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.

Rent-Free Period

In addition to the fit-out contribution, 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.

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

€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:

Additional charges also include: cleaning and maintenance of building, security and reception desk, pest control, utilities and supplies for common areas, insurance, property tax, and property management if outsourced by landlord.

Lease Timeline: 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 LL

Negotiated Subletting/Assignment

The tenant's right to sublease or assign the space typically is NOT 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

15sm-20sm

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

Regional HQ Office Space

12sm-18sm

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

Madrid & Barcelona is a leading market in this category.

Desk Sharing

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

Urbanization of the workforce is: Equal to several other considerations driving location decisions

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

In addition to the fit-out contribution, 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.

Lease Provisions

Lease Term

3yrs.-10yrs.

Typical lease term in years.

Operating Expenses & Service Charges Included

Quoted market rent typically includes operating expenses (service charges).

Service Charge Notes:

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

Lease Timeline: 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 LL

Negotiated Subletting/Assignment

The tenant's right to sublease or assign the space typically is NOT 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

Section 1. Fit Cost Data

Total Fit-Out Cost

€850/sm

Class A Office

€650/sm

Class B Office

€450/sm

Class C Office

€350/sm

Flex Office / Warehouse

Furniture Cost

€150/sm

Class A Office

€120/sm

Class B Office

€100/sm

Class C Office

€100/sm

Warehouse

Furniture Cost Notes:

These costs are typically paid by the client.

Floor Covering Cost

€120/sm

Class A Office

€80/sm

Class B Office

€40/sm

Warehouse

Floor Covering Cost Notes:

These costs are typically paid by the client.

Partitioning Walls Cost

€120/sm

Class A Office

€100/sm

Class B Office

€80/sm

Class C Office

€80/sm

Warehouse

Partitioning Walls Cost Notes:

These costs are typically paid by the client.

Other (IT/etc) Cost

€180/sm

Class A Office

€150/sm

Class B Office

€120/sm

Class C Office

€120/sm

Warehouse

Other Cost Notes:

These costs are typically paid by the client: Just voice&data cabling and racks, not specific client´s patches & switches, servers, etc.

Construction to Move-in Cycle Time

16wks

Class A Office

14wks

Class B Office

13wks

Class C Office

12wks

Flex Office / Warehouse

Cycle Cost Notes:

We have included 2 weeks for development of specific tech documentation to apply for licenses. Out of Madrid, we very often ask the client for authorization to commence the works without being granted the license (concession period may take months).

Typical Manpower Hourly Rates

€180/hr

Programme Manager

€180/hr

Senior Project Manager

€120/hr

Project Manager

€80/hr

Junior Project Manager

€60/hr

Project Assistant

€150/hr

Workplace Consultant

€120/hr

Designer/Architect

Manpower Rates Notes:

Workplace Consultant: at this moment, this position is subcontracted for works

Project Management Base Fee

7-10%

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.
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.
Phase 1 Notes:
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report: Not a detailed and full building technical due diligence. Mainly focused on fulfillment of key regulations that could jeopardize the obtainment of the Tenant´s licenses and permits as well as flexibility of systems to allocate.

Develop high-level project estimate and timeline based on test fit and Client standards: Based on cost ratios per m2 of similar fit out projects.

Define workplace strategy for client, research what kind of location, office / work environment accelerates business: General opinions and strategies. At this moment we do not have highly professional NWOW and Workplace consultancy skills.

Define program of requirements for location, building and interior characteristics: General definitions.

Engage with the Client Facilities Management (FM) Operations team to ensure alignment with Client standards: Yes, when possible. Depends on the professionalism 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:
Develop the RFP for selection of a space planner/architect and any other consultants identified and required: We intend to provide all services in house and under our contract of services.

Defining interior guidelines and controlling workplace strategy and functionality are general opinions and strategies. At this moment, we do not have high professional NOW and Workplace consultancy skills.

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:
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:
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:
At this moment we do not have highly professional NWOW, Change Management and Workplace consultancy skills. Therefore, we would need to subcontract these services to specialists within Colliers network.

Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.

Incentives and Labor Market

9, 1 9/10

Incentives
Value potential, diversity/number of programs

8, 2 8/10

Job Saturation
Competition for workers

5, 5 5/10

Wage Inflation
Rise in wages (past 10 years, local currency)

Educational Attainment

10, 0 10/10

HS Ed Eq
Proportion of population attaining this level

10, 0 10/10

University Ed
Proportion of population attaining this level

10, 0 10/10

Overall
Composite average of HS Ed Eq & University

Composite

8, 2 8/10

Additive sum of incentives, saturation, overall ed attainment, and wage inflation

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