In Barcelona tourism real estate throw away downtown offices. In the last ten years, Barcelona has reconverted 380,000 m2 of offices to become hotels (52%), or residential properties (44%) according to the JLL. JLL says that 60% of this change in the last decade was located in the city center, while 28% was in the area of Paseo de Gracia and Diagonal. There have been buildings that have been sold to two three times, like those at the number 1 Paseo de Gràcia or the number 5 Plaza Catalunya. An interesting case is that of the former headquarters of Banesto, located in Plaza Catalunya, 11, which was bought by Pontegadea (REIT Amancio Ortega) to SAREB 44 million and will now become an Iberostar hotel.
Another example of conversion are the outbuildings of the Department of Interior located at Paseo Pujades 11-13 the chain Motel One bought the Generalitat by 14 million to a hotel. Henkel sold its corporate headquarters, located in Corsica Street, 480, Meridia Capital, to move to a complex located at 22 @. The fund will demolish the old offices to build a real estate project that besides the hotel, include a block of 33 flats, commercial premises, and six townhouses.
All these movements have made the average vacancy rate of offices in Barcelona at the end of 2014 below 13%. There are 805,000 m2 available, 44,500 m2 less than in 2014.
The reduced availability (Barcelona ended 2014 with 91,000 square meters available less than at the end of 2013, displacing the rate to 15.4%) and prime rental growth (18 euros per square meter per month) for the first time five years in the third quarter of 2014, are indications of the possible final recovery of the sector.
However, investment in the Barcelona office market has grown significantly it has tripled compared to 2013, according to a report presented by Aguirre Newman telcos last week. However, in the center of the city-the Eixample-mostly, traditionally considered along the stretch of the Diagonal between Francesc Macia and Zona Universitaria as the central business district, evolves based on other parameters. This area continues to lose office because many of the buildings are converted into hotels or commercial establishments. "In Figures on the total volume of Barcelona offices that this change is still small, but already apparent in the statistics and the trend is to continue to grow," says Josep Maria Piqué, director of Barcelona offices of Aguirre Newman. The total stock of the city and its surroundings were as at January 1, 2015, of 5,881,469 m2, 0.8% lower than a year earlier. The cut is 0.6% if the 15,000 new m2 to the first half of 2014 as incorporated in addition, the balance, negative, is 32,800 m2, according to Aguirre Newman.
One reason for the declining surface is due to the sale of the Agbar Tower, which will be converted into a luxury hotel chain Hyatt.