Beyond Hybrid: the quality gap splitting the office market
- While the top of the market is operating close to full occupancy, a relevant portion of the stock remains disconnected from the new corporate demand.
The corporate office market has been confirming a transformation that goes beyond the debate around in-person or remote work. The sector is now operating—more clearly than ever—at two different speeds.
On one side, ultra-premium buildings (A+ and A), located in primary submarkets, are posting low vacancy (15.09%), record prices, and higher liquidity. On the other, Class B assets face increasing occupancy challenges, pressured by technical obsolescence and declining competitiveness.
This movement reflects a shift in occupier behavior. Offices are no longer just operational hubs—they have become instruments for talent attraction, productivity, and institutional positioning.
Value and demand concentrated at the top of the market
The preference for higher-quality assets is not only related to aesthetics. Large floor plates, better layout efficiency, modern HVAC systems, ESG certifications, higher ceiling heights, and robust technological infrastructure have become prerequisites for technology companies, financial institutions, and large law firms.
In São Paulo’s main corporate corridors—such as Faria Lima—the combination of limited new supply and qualified demand has supported a new appreciation cycle. Up to Q3 2025, according to the Market Analytics platform, the market value for A+ offices in these regions reached R$ 143.62/m², an increase of 29.54% compared to 2020, which closed the year at R$ 110.95/m².
Retrofit or permanent loss of value
For owners of obsolete buildings, the current scenario demands a strategic decision. Without retrofit investments, the trend is continued devaluation and an increased risk of the asset becoming financially inefficient. The cost of upgrading to modern standards of thermal efficiency and connectivity is high, but 2025 data suggests this is the only path to prevent the property from turning into a financial liability.
The office market is not shrinking; it is transforming. The success metric for 2026 and beyond will not be simply the number of square meters leased, but the asset’s resilience in maintaining technical and geographic relevance in an environment of extreme selectivity.
