Published on and written by Cyril Jarnias
Spanish commercial real estate is experiencing a remarkable resurgence in 2025, offering savvy investors enticing opportunities in a thriving market. As the Spanish economy continues its post-pandemic recovery, the commercial real estate sector is positioning itself as a solid pillar for investors seeking to diversify their portfolios and generate attractive returns. Let’s dive into the heart of this dynamic market to discover the most promising segments, analyze risks and potential returns, and explore the trends shaping the future of commercial real estate in Spain.
A Range of Possibilities: The Jewels of Spanish Commercial Real Estate
Spain offers a diverse palette of commercial assets, each with its own characteristics and return potential. Investors are spoiled for choice among various options, ranging from modern shopping centers to prestigious offices and strategically located logistics warehouses.
Shopping Centers: A Post-Pandemic Renaissance
Despite challenges from online commerce, Spanish shopping centers are experiencing a spectacular revival. The recent acquisition of Las Rosas shopping center in Madrid by SCPI Transitions Europe perfectly illustrates this trend. With over 9,000 m² of commercial space and an impressive 7 million visitors in 2024, this asset demonstrates the resilience and persistent appeal of well-positioned shopping centers.
- Shopping centers located in high-density urban areas
- Complexes offering enhanced customer experiences, blending retail, entertainment, and dining
- Assets benefiting from good public transportation connectivity
Office Space: A Sector in Transformation
The Spanish office market is reinventing itself to meet new post-Covid business expectations. Flexible workspaces and next-generation offices, featuring layouts that promote well-being and productivity, are particularly sought after.
- Growing demand for coworking spaces in major cities like Madrid and Barcelona
- Strong interest in eco-certified office buildings
- Opportunities in emerging business districts offering better value for money
Logistics Real Estate: The E-commerce Boom as Catalyst
The rapid rise of online commerce is propelling the logistics real estate sector to the forefront. Modern warehouses, located near major transportation routes and urban areas, are particularly in demand.
- Strong demand for “last-mile” distribution centers on the outskirts of major cities
- Growing interest in automated mega-warehouses
- Development potential in less saturated regions like Andalusia or Galicia
Profitability and Risks: Deciphering Opportunities in the Spanish Market
Spanish commercial real estate offers attractive return prospects, but like any investment, it also carries risks. Thorough analysis is essential to navigate this complex market.
Attractive Returns in a European Context
Spanish commercial real estate yields are positioned advantageously compared to other European markets. According to recent JLL data, prime shopping center yields stand at 6.25%, while commercial business parks show a rate of 6.05%. These figures are significantly higher than those observed in more mature markets like Paris or London, thus offering interesting return potential for investors.
- Prime shopping centers in Spain: 6.25%
- Commercial business parks in Spain: 6.05%
- High Street assets in Spain: 4.15%
These high yields are partly explained by a correction in commercial asset valuations in recent years, making the Spanish market particularly attractive for yield-seeking investors.
Risk Management: A Prudent Approach is Essential
Despite these promising prospects, investing in Spanish commercial real estate is not without risks. Investors must be particularly vigilant about several aspects:
Legal and Zoning Risks: Unlike France, Spanish notaries do not conduct thorough legal checks during real estate transactions. It is therefore crucial to work with local experts, particularly specialized lawyers, to perform all necessary verifications.
- Verification of the Nota Simple and Property Registry
- Review of construction and zoning permits
- Analysis of potential easements or usage restrictions
Market Risks: Economic volatility and rapid changes in consumer habits can impact the performance of commercial assets. Geographic and sectoral diversification of the portfolio can help mitigate these risks.
- Invest in multi-use assets to reduce dependence on a single sector
- Prioritize prime locations in major cities to ensure stable rental demand
- Consider investments in specialized REITs to benefit from professional management and risk pooling
Trends Shaping the Future of Spanish Commercial Real Estate
The Spanish commercial real estate market is constantly evolving, influenced by macroeconomic, technological, and societal trends. Understanding these dynamics is essential to anticipate future opportunities and strategically position investments.
Digitalization at the Heart of Sector Transformation
The digital revolution is profoundly impacting all segments of commercial real estate. Shopping centers, in particular, are reinventing themselves to offer an omnichannel experience, merging the best of physical and digital.
- Integration of augmented reality technologies in commercial spaces
- Development of click-and-collect platforms and rapid delivery services
- Use of artificial intelligence to optimize flow management and personalize customer experience
These technological evolutions enhance the appeal of modern shopping centers, as demonstrated by the success of Las Rosas center in Madrid, which capitalized on a diverse retail offering and enhanced customer experience.
The Rise of Logistics Real Estate: A Structural Trend
The e-commerce explosion, accelerated by the pandemic, is propelling the logistics sector to the forefront. Investors are turning en masse to this segment, attracted by solid fundamentals and robust growth prospects.
- Continued increase in online sales, requiring modern logistics infrastructure
- Growing demand for ultra-fast deliveries, stimulating urban logistics hub development
- Adoption of automation technologies in warehouses, increasing their efficiency and value
This trend is reflected in investment figures, with a significant increase in logistics sector transactions in 2024 and optimistic forecasts for 2025.
Sustainability as an Essential Investment Criterion
Environmental and social considerations are increasingly important in Spanish commercial real estate investment strategies. “Green” certified or low-carbon footprint assets are increasingly sought after by both investors and tenants.
- Increased investment in energy renovation of existing buildings
- Development of positive energy or carbon-neutral real estate projects
- Integration of ESG (Environmental, Social, and Governance) criteria in investment strategies
This orientation toward sustainability is not just a structural trend but also a long-term performance factor, as “green” assets often benefit from better valuations and more stable rental demand.
Flexibility as the Key Word
The pandemic accelerated demand for more flexible commercial and office spaces. This trend continues in 2025, with a marked preference for adaptable and multifunctional assets.
- Modular spaces that can quickly adapt to changing tenant needs
- Development of hybrid concepts blending retail, offices, and leisure spaces
- Increase in flexible lease offerings and à la carte services
This increased flexibility allows commercial property owners to better respond to rapid market changes and optimize their occupancy rates.
Spanish commercial real estate offers fertile ground for investors in 2025. With attractive returns, a recovering economy, and promising sector trends, the market presents numerous opportunities. However, a prudent and well-informed approach remains essential to navigate this complex and constantly evolving landscape.
Savvy investors will know how to leverage the diversity of the Spanish market by targeting well-positioned assets in growth segments like logistics or next-generation shopping centers. The key to success will lie in the ability to anticipate future trends, integrate sustainability criteria, and adapt to the growing demand for flexibility.
Good to Know:
Spanish commercial real estate offers attractive returns in 2025, with rates reaching up to 6.25% for prime shopping centers. However, thorough due diligence is crucial, particularly regarding legal and zoning aspects specific to the Spanish market. The most promising segments include logistics, modernized shopping centers, and flexible offices, all benefiting from digitalization and sustainability trends.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
