Boutique Office Boom Raises the Question: What Exactly Constitutes a Boutique Office?

This trend is clearly visible in areas like Rebouças. A recent project in the vicinity is Pátio Rebouças by RBR, which was 50% leased by QI Tech upon its completion in August 2023. Rebouças has witnessed the emergence of other boutique developments, such as White 2880. Most recently, this property was fully leased by Stone Pagamentos, which plans to establish its headquarters in the 7,000 m² building.

The review of São Paulo's city master plan dedicated a chapter exclusively to this region, designating the avenue as a pivotal axis for urban structure and development. The increased construction potential will facilitate and encourage the development of boutique-style buildings.

In contrast, the Chucri Zaidan area currently lacks boutique developments, at least according to the perspective of Colliers' manager. Crispim explains that despite hosting traditional high-standard properties, the region does not meet the criteria to be considered a boutique asset area.

"It's not solely about floor size or total leasable area. Simply being located in an area like Chucri Zaidan does not automatically classify it as boutique. While these buildings may boast advanced technology and high quality, they do not qualify as boutiques because they are not situated in as prestigious or sought-after locations for major corporations," he evaluates.

Castro sees the rationale behind boutiques being exclusively located in prime areas such as Faria Lima and Rebouças. He believes that regional demand drives the boutique market.

"Boutique spaces are occupied by companies that require a presence in these prime locations but do not necessarily need large spaces. For example, financial sector firms or law offices need to be in close proximity to their clients, who are typically large corporations," explains RBR's CEO.

However, defining a building as boutique involves more than just its location and technical specifications. Michel Rike, architect and founder of Zien Arquitetura, highlights the pivotal role of design in this definition, which can evolve significantly during its conception.

"For example, a recent project we developed for STAN is situated in 'Reboucinhas', nestled between Av. Faria Lima and Marginal Pinheiros. Originally planned for the general market, the building was adapted during construction to accommodate a single tenant from the financial sector seeking a corporate headquarters in the area. It boasts three floors, including a spacious ground-level garden and an internal atrium accessible to all users and visitors. Additionally, there are two corporate floors and an expansive rooftop terrace offering views of Jardim América," he elaborates.

The specific property referenced is Edifício Rebouças 3507, completed in December 2023 and now fully leased to Galapagos Capital.

All executives interviewed agree that boutique offices signify an advancement in the real estate market, providing a sophisticated and distinctive option for companies that prioritize location, design, and technology. Consequently, the future of boutique offices hinges on the market's ability to recognize and value these unique attributes.

"In essence, a 'boutique' office building aims to deliver a more exclusive and personalized experience for its occupants, with meticulous attention to detail. This includes combining a prime location, distinctive design, high construction quality, and a suite of amenities," concludes Michel.