Barcelona and Madrid are among the markets with the highest proportion of offices at risk of becoming obsolete by 2030, with 81% and 77% respectively, due to factors such as the age of assets and increasing environmental regulations.
In Madrid, there are 1.2 million square meters of offices, distributed across 147 buildings, which are at risk of obsolescence.
Milan takes the first position (86%), followed by Barcelona (81%), Stockholm (81%), Paris (80%), Madrid (77%), Amsterdam (76%), and London (76%).
The Cushman & Wakefield report analyzes the risk of obsolescence in major European cities by 2030 and highlights opportunities for conversion and repositioning in a constantly evolving market.
– The risk of obsolescence grows in Spain. According to the latest report from Cushman & Wakefield, "Rethinking European Offices 2030", Barcelona and Madrid are among the European cities with the highest proportion of offices at risk of obsolescence, 81% and 77% respectively, due to factors such as the age of assets and increasing environmental regulations. The report, prepared by the real estate consultancy, analyzes the risk of obsolescence in major European cities by 2030 and highlights the importance of changes in use and repositioning in a constantly evolving market.
In this regard, Carlos Pueyo, International Partner, Head of Project & Development Services Iberia at Cushman & Wakefield, points out: "Madrid and Barcelona are beginning to drive a necessary transformation in the office real estate sector" and emphasizes that "the adaptation and modernization of these spaces are fundamental for the future of our cities."
The Rethinking European Offices 2030 report expands on a previous analysis presented in 2023 (European Obsolescence Equals Opportunity) that revealed that 76% of the office stock in Europe was at risk of becoming obsolete by 2030. This year, the Cushman & Wakefield report analyzes the risks of office stock becoming obsolete by 2030 in 16 key cities in Europe, as well as opportunities for owners to reposition (improve the quality of their spaces) or convert (seek alternative uses). The report is an update of a previous analysis from last year, which showed that 76% of the office stock in the analyzed markets was at risk of becoming obsolete by 2030.
In this regard, Carlos Pueyo, International Partner, Head of Project & Development Services Iberia, emphasizes the importance of flexible urban planning policies to expedite these processes: “Owners play a fundamental role in this transformation. The office market faces an unprecedented challenge, and they must decide whether to reposition or repurpose their assets.” He adds that “having clear and efficient urban planning policies, both at local and national levels, will be key to facilitating this transition and ensuring that our cities are prepared for the future.”
The report notes that more than 170 million square meters of office space in Europe are at risk of becoming obsolete if they are not repurposed for other uses or adequately repositioned. In this context, Barcelona and Madrid stand out among the seven Western European markets with the highest risk of obsolescence, where nearly 80% of the current stock could become obsolete by 2030 due to the age of the assets and increasingly stringent climate and sustainability regulations. In the ranking, Milan takes the first position (86%), followed by Barcelona (81%), Stockholm (81%), Paris (80%), Madrid (77%), Amsterdam (76%), and London (76%), among others.
| City | % Office Stock at risk |
| Milan | 86% |
| Barcelona | 81% |
| Stockholm |
81% |
| Paris | 80% |
| Madrid | 77% |
| Amsterdam | 77% |
| London | 76% |
| Brussels | 70% |
| Frankfurt | 70% |
Likewise, the report emphasizes that for buildings located in central areas, where demand and rental prices are higher, upgrading and repositioning will be the optimal strategy. In peripheral areas, where vacancy is higher, conversion to other uses could be a more viable solution.
Madrid: Innovation in the Face of Obsolescence
The report highlights Madrid's potential in adapting its offices. Since 2020, 700,000 m² of office stock has been renovated to meet quality office standards and respond to current demand, while more than 300,000 m² of stock has been converted to other uses. Of these 300,000 m², 70% has been converted to residential use, while the rest, to a lesser extent, has been transformed into hotels, medical centers, and other uses. Additionally, the report notes that over 90% of the office stock that has been repurposed was already classified as class B or C – that is, typically lower-quality assets. On the other hand, most of the changes in use that have occurred in Madrid have taken place outside the CBD (Central Business District), either in the city center or in more peripheral areas such as the M-30 or M-40. Thus, Cushman & Wakefield's analysis suggests that in Madrid there are 1.2 million square meters of offices, distributed across 147 buildings, at risk of obsolescence. Pueyo warns that “over time, the performance of many of these properties will be affected, and we estimate that by 2030 more than 80% of the assets will have an EPC rating of C or lower.” Although a high proportion of assets have been converted to residential use, Cushman & Wakefield's analysis suggests that less than 10% of these assets at risk could be repositioned as offices. Since 2020, more than 300,000 square meters of former offices have been converted, mostly for residential use, while the rest have been allocated to hotels and medical centers. Additionally, another 700,000 square meters of offices have been renovated and improved to meet current quality standards and respond to the growing demand for modern workspaces. “This trend reflects Madrid's potential to transform obsolete offices, either by repurposing them for new uses or by modernizing them to optimize available space,” Pueyo notes.
Barcelona and the Success of Torre Pujades
The Cushman & Wakefield report highlights the case of Torre Pujades in 22@ in Barcelona as a successful repositioning example. Cushman & Wakefield advised on the transformation of this 10,000 m² building, previously occupied by a single company, and converted it into a multi-tenant building, with improved infrastructure, common areas, and LEED Gold and WELL certification.
In this regard, Carlos Pueyo, International Partner, Head of Project & Development Services Iberia, highlights that “the case of Torre Pujades demonstrates how strategic planning can revitalize obsolete assets, adapting them to the current demand for quality spaces and the highest sustainability standards. Investment in efficiency, user experience, and certifications such as LEED and WELL has made this building a model to follow for a sector that must adapt to both European regulations and an ever-evolving market.”
