13 points to consider before renting an office in Madrid

Choosing just any site would be a tremendous mistake. You must make sure that the venue meets the requirements your team needs for business to thrive. Therefore, before you start, we recommend you to be careful and pay attention to the following points. If you comply with them, you will be able to lease an office in the city with the certainty that there will be no mishaps in the future.

"Do you really need to rent an office?

Until recently, most companies based in Spain typically required specific workspaces to carry out their activities. Today, employees prefer to work from home or even inhybrid settingsto get the best of both worlds: work-life balance and professional relationships. The use of coworking spaces—in their various forms, such asfixed or flexible desksinopen-plan officesor even coworking offices, is another option to consider, especially since these types of spaces often offer meeting room rentals.

If your company can operate in one of these alternative environments, you could save a lot of time and money, as well as offer a better quality of work and life to your employees.

"Location, location and location

The choice of the area is the most important decision you will have to make before you start. To get it right, you should pay attention to the following points:

• Ask yourself the following questions:
  • Is it an office building or an apartment building?
  • Is it easy to get there by car or public transportation?
  • Is it easy to find?
  • Is your location appropriate for the image the company wants to offer?
• Make sure it is close enough and well connected for team members to get to on a daily basis and accessible for meetings with customers and suppliers.
• Another very important factor is that the location has all the necessary amenities. It is likely that the team and employees will value working close to restaurants, cafes, banks, supermarkets, etc.

"The best areas to rent an office in Madrid

The Spanish capital has several areas that are ideal. We suggest Chamberí, La Castellana or the Salamanca neighborhood.

1. Renting an office on Paseo de la Castellana

It is the financial district par excellence of the city and one of the busiest and most traditional walks, although perhaps not the most central. This area is excellently connected by metro lines: Avenida de América (L4, L6, L7 and L9), Núñez de Balboa (L5 and L9), Gregorio Marañón (L7 and L10) and Rubén Darío (L5).

It is one of the areas most traditionally demanded by companies of any size to establish themselves. Here you can find luxury spaces for large corporations looking for a representative building or for small companies that want to offer an image of prestige.

According to the website of the real estate portal Belbex, the average price of this type of leases in La Castellana is 7,349 € per month. The cheapest has a cost of €350 per month and the highest is €87,360 per month. The average amount is 25.21 €/m2 per month, with a minimum price of 9.09 €/m2 and a maximum of 39.00 €/m2 per month. As you can see, there are options of all kinds.

La Castellana has coworking spaces and/or business centers available from 69 € per month.

The main points of interest in the area are:

1. National Museum of Natural Sciences
2. Santiago Bernabeu Stadium
3. AZCA
4. Picasso Tower
5. KIO Towers
6. Cuatro Torres Business Area

2. Renting an office in the Chamberí district

The Chamberí district is part of the central core of Madrid. It is the most traditional neighborhood of the capital, capable of attracting restaurants, art galleries and fashion stores, without losing its traditional aristocratic essence.

The area is divided by the neighborhoods of Gaztambide, Arapiles, Trafalgar, Almagro, Ríos Rosas and Vallehermoso. Close to the center, it has an unbeatable connectivity and a large number of services that make it a perfect location to establish new businesses. The main streets that can be found in it are: Bravo Murillo, Santa Engracia, Eloy Gonzalo, José Abascal, San Bernardo and Avenida de Filipinas.

The average price of leased workspace is €6,579 per month. In this case, the cheapest has a monthly cost of €150 and the highest, €165,120. The average price per month is 22.19 €/m2, with a minimum cost of 5.21 €/m2 and a maximum of 40.00 €/m2.

The main points of interest in Chamberí are:

1. Sorolla Museum
2. Geominero Museum
3. Civil Guard Museum
4. Olavide Square
5. Ponzano, one of the most popular streets in Madrid to have a drink

3. Renting an office in the Salamanca district

It is the most distinguished district and one of the most luxurious in the center of the capital. It is made up of six neighborhoods: Lista, Castellana, La Guindalera, Recoletos, Goya and Fuente del Berro. Although it originally began as a purely residential neighborhood, Salamanca currently has a great deal of commercial, cultural and leisure activity. It is served by the subway lines Serrano (L4), Núñez de Balboa (L4 and L9), Retiro (L2) and Ventas (L2 and L5).

This downtown neighborhood, also known as the Golden Mile, is located within the central core of the city and has important shopping streets with all kinds of businesses: Hermosilla, Juan Bravo, Velázquez, Goya, Serrano, Claudio Coello, Príncipe de Vergara and the last stretch of Paseo de Castellana.

The area has a wide range of workspace for lease and is well connected to the rest of the city, making it perfect for setting up small, medium and large companies. The average monthly price is €6,982 per month; the most affordable is €230 and the most expensive is €210,882. The average cost is 22.55 €/m2 per month, with a monthly minimum of 5.95 €/m2 and a maximum of 65.00 €/m2.

The main points of interest in Salamanca are:

1. The Puerta de Alcalá
2. El Retiro Park
3. Plaza de Colón
4. National Library
5. The Arab House
6. National Archaeological Museum
7. The Peace Market

"The budget

After location, price would be the next point to worry about. Before you start looking, analyze your numbers to come up with a budget that will allow you to operate comfortably. Avoid choosing a space with high fixed costs that will hinder your growth.

"Additional expenses

In addition to the monthly rent, the lease entails many expenses that should be taken into account. It is important to make sure what services are included, including internet access, daily cleaning and access schedules.

The contract must be clear and complete, with all provisions well detailed. The services included, which are part of the final price, must appear in this document. Under no circumstances should the lessor's word alone be accepted on this subject.

"Who is responsible for repairs?

This is an item that could represent a significant expense. In the event that the landlord is in charge of the repairs to the apartment, it is advisable to confirm that he/she is willing to solve them when appropriate. If this is not the case, make sure that there is room for maneuver in the budget.

"The importance of safety

It seems like a no-brainer, but sometimes we overlook it. It is necessary that the building meets the necessary conditions for employees to work safely. For this reason, you should find out if the facility has a physical doorman or private protection and what kind of security measures are maintained outside working hours: cameras on each floor, alarms, etc.

"Let the space adapt to your needs, not your needs to the space.

You need an apartment big enough for your team members to have their desks, common areas, offices and meeting rooms, but not so big that you're paying for square footage you'll never use.

A little extra room could be a good thing, especially if you plan to grow during the term of the lease. In situations like this, we recommend coworkingwhere expanding business is extremely easy.

"Distribution

Do you want an open space or a more intimate workplace? Preferences depend on each manager and his or her staff. Think carefully about what style would best suit your team and your activity and choose a place that fits the optimal layout for you.

"The condition of the property

Some advertisements published on specialized websites do not reflect the actual condition of the apartment, which may require a tune-up before the move. For this reason, check the condition in which it will be delivered. If you need improvements in the electrical installation, furniture or painting, negotiate beforehand who will pay for them.

"Space speaks for you: where you set up will position you as a company.

The office sends a clear message about the company at meetings and gatherings held in its rooms and offices. Choosing a building that is falling apart conveys to clients the feeling that you are going through difficulties. As for the location, being in a representative area of the city is not the same as being in an apartment in the suburbs.

"Common areas

Do you need exclusive conference rooms or offices for meetings? Do you want a kitchen or some other specific location?

In addition to desks or workstations, you should think about other places that are useful for the team. Having common areas is of great importance to relax and disconnect from the hectic day to day. In addition, they can also serve as collaborative work and meeting areas.

"The contract

You may not want to make a long-term commitment to avoid being trapped in an office if the business goes into crisis, is sold or you need a larger location. Therefore, the length of the contract is another important factor.

1. Which law applies?

The law governing office rentals is Law 29/1994 of November 24, 1994 on Urban Leases (LAU).

This legislation regulates the leasing of buildings where industrial, commercial, artisan, professional, recreational, welfare, cultural or educational activities, among others, are carried out. It would be a lease for a use other than that of the apartment intended for housing.

2. What duration can we negotiate?

The duration can be freely agreed upon by both parties. Until recently, a period of between 3 and 5 years was the norm. This factor has changed considerably in today's world and in coworking spaces coworking and/or business centers are now making contracts without permanence.

3. How is the rent updated?

The parties may negotiate the updating of the rent each year in various ways:

• Application of the CPI: designated on an annual basis.
• CPI + %: a certain percentage agreed by the parties is added to the CPI, for example, "CPI + 3%".

4. Trust: the magic word in business.

It is necessary to consider where the company will be at the end of the established period. In the case of a three-year lease, where will you be in that time? And importantly, do you have a real plan to reach that time horizon?

5. Options for an early exit

It never hurts to know what might happen if we have to break the lease. Make sure you are comfortable with the rates or other penalties in case something changes during the course of the lease.

AUTHOR: MÓNICA COCA

Freelance writer and screenwriter looking for good stories to tell. She can be found in all formats: articles, podcasts, novels and whatever comes up.