Over the past 12 months, the region has seen a negative net absorption of 23,000 m², marking the highest negative net figure among all regions in São Paulo, surpassing even the city center and Alphaville, both with a negative net absorption of 13,000 m².

Various reasons contribute to this significant exodus of companies from the region, ranging from media and information companies like WarnerMedia to technology firms like X (formerly Twitter).

Presently, Faria Lima boasts the highest average asking price in São Paulo, standing at R$ 246.49/m². Notably, the Corporativo Faria Lima commands the highest price within this district, reaching R$ 330/m², in BOMA area. The Class A building, delivered in December, has 13,000 m², and is owned by Grupo 4M.

For Class A+ properties, there has been a notable 13.9% increase in the average asking price over the past 12 months. Remarkably, Class A developments have experienced an even more substantial surge, soaring by 80.1%.

Consider the case of tire manufacturer Pirelli, previously occupying 2,000 m² at Praça Faria Lima. The company has now transitioned to Parque da Cidade in Chucri Zaidan, occupying nearly the same space. Despite both properties falling under the Class A+ category, the one at Faria Lima has an average asking rent of R$ 248.87/m², while the one in Chucri is set at R$ 100/m².

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According to Giancarlo Nicastro, CEO of SiiLA, what is happening is a side effect of rent resets. The executive reflects on the pandemic period when, fearing office vacancies, property owners maintained pre-pandemic prices or even reduced them.

"Now, three years later, the contracts inked during that period are having their rents reset, causing apprehension among many tenants. Recent market movements indicate that the region is already surpassing R$ 300/m² for floors spanning 2,000 or 3,000 m². This trend, typically associated with boutique office towers featuring smaller floors, is now observable in larger structures," he explains.

Nicastro underscores some companies are recalculating their strategies, realizing that the cost-benefit equation of being situated on Faria Lima may no longer be favorable, especially considering the availability of high-quality buildings in Rebouças or Chucri Zaidan at significantly lower rates.

"There have been instances in Faria Lima where the asking price spiked by 68% in just three months, a trend that shows building owners in the region may be getting overly aggressive.  While rent resets are customary, we are witnessing price increases that do not align with economic realities or the trade-offs the tenants are willing to make.  This is apparent from the net absorption figures," Nicastro concludes.