In the current era, where digital technologies and work flexibility seem to challenge the traditional concept of the office, it is essential to remember and reaffirm the value these spaces hold for the city of Barcelona. Offices are not just places where work is done, but they also play a vital role in the cohesion, creativity, and sustainability of a city.
The use of technology and applications like Teams or Zoom have revolutionized our way of working and have led us to incorporate hybrid and flexible models that facilitate remote work, work-life balance, and comfort. Have hybrid models changed our way of working? Yes. But there is something we cannot lose sight of, and that is that the office remains the fundamental pillar for any company that wants to prosper in this new era. Evidently, we are talking about a pillar that varies according to geographies, ages, positions, functions, and more, and that also transforms, evolves, and even rehabilitates.
In addition to changing the tools we use in our daily lives that facilitate our work, the hybrid model, this new way we have of working and doing things, has also led office owners and occupants to rethink the spaces where they are located. Companies are increasingly looking for quality spaces that not only allow them to attract, capture, and retain talent, but also comply with the latest environmental legislation and standards, as well as well-being and digital connectivity.
In this vein, offices that fall below a certain level of energy performance are currently under threat of legal obsolescence, which is why owners are being urged to act now to mitigate the impact on their portfolios. According to a study by Cushman & Wakefield, almost 80% of the office stock in Europe will become obsolete by 2030. This means that more than three-quarters of Europe's office buildings are at risk of becoming obsolete, unless their owners invest in improvements or find new alternative uses for them. Applying these data to our city, if Barcelona has six million square meters of office space, four million square meters would become obsolete by 2030.
Similarly, from this study we can easily draw the conclusion that the vast majority of companies are in offices with an expiration date, in buildings that have become obsolete, located in the city center, on Passeig de Gracia, Diagonal or Consell de Cent, which are not prepared for the evolution that the sector is experiencing and the challenges it will have to face in the coming years. Companies located in these buildings will have to move, yes or yes, to buildings constructed or rehabilitated, following models that adapt to the needs of the market. This context provides pressure from regulators and stakeholders on office tenants and owners, in a context where ESG, wellbeing and motivation are key axes to attract and retain talent in companies.
In Barcelona we have buildings that, when rehabilitated, have managed to attract large companies and generate quality stock in the cityFor the users of these offices, we will have to seriously consider where we are going. And we will have to be careful, because there are many options, but there are very few buildings that meet the requirements that will be imperative in 2030. Thus, part of the debate is: and then,what will happen to those buildings that do not comply with these requirements?Well, we will have to work to reposition them and prevent their obsolescence. In Barcelona, we have buildings that, when rehabilitated, have managed to attract large companies and generatestockof quality in the city, such as the arrival of Porsche Digital at the Wittiwood building, the first building entirely constructed with wood in Spain.
Demand in Barcelona behaves with this selective criterion, and we have observed that more and more companies are making this reflection and taking decisions along these lines. We have a high demand for offices and, although the availability rate seems to have risen, we have little quality product to meet this demand which, little by little, is understanding that the building it occupies does not meet the necessary requirements.
We must find ways to reposition those office buildings that are obsolete and work to continue promoting sustainabilityOffices are a fundamental part of Barcelona's economic, social, and cultural fabric; they are centers of collaboration, creativity, and sustainabilitythat play an essential role in maintaining a tangible connection between the city, its people, and its commitment to a sustainable future. Today, the office continues to offer a series of benefits that remote work does not provide; it is a central axis in any business culture: a space where different learning models converge, where the feeling of belonging to the company is exalted, where relationships emerge and consolidate, where advantage is taken ofcross-sellingbetween areas... the office is a hub that, above all, remains fundamental for Barcelona. Therefore, to be able to enable and develop the great potential that our city has, we have to find ways to reposition those office buildings that are obsolete and work to continue promoting sustainability when providing physical workspaces that encourage human interaction and collaboration and respect for the planet