TRF6 leases 25,000 sq m and highlights shortage of premium offices in Belo Horizonte

The size of leased areas directly reflects the availability of office stock. Belo Horizonte’s office market is operating with limited space even amid strong demand. A comparison between annual net absorption and new supply shows a recurring deficit that helps explain the city’s historically low vacancy rate.

With total GLA of 219,000 sq m, Class A and A+ buildings in Belo Horizonte have a vacancy rate of just 5.45%, a historically low level that fell as far as 3.38% in 2024. In addition to Edifício Beyond, around 9,000 sq m of new supply is expected to be delivered in Belvedere by the end of the year.

Because the occupancy requires adaptation works to accommodate TRF6’s operations, the agreement was structured as a built-to-suit lease. The adapted facilities include layout, furniture, equipment and building systems, with an initial estimated cost of approximately R$60.22 million. The institution will pay R$906,300 per month to amortize these works.

The Preliminary Technical Study that supported the lease identified inadequacies in the institutions’ current space. The approximately 25,800 sq m currently occupied by the Federal Court Section of Minas Gerais is shared by the two institutions. The document argues that each institution would require at least 20,000 sq m to accommodate its staff.

According to the study, public properties and the possibility of constructing a purpose-built headquarters were also evaluated before the lease was signed. However, the implementation period for either option would have been longer than the institution’s immediate space requirement.

Base rent is R$2.243 million per month for a 15-year term. Including the amount related to the adaptation works, the total monthly payment by the court will reach R$3.15 million. Over the full term, total payments are expected to reach approximately R$567 million, excluding the IPCA inflation adjustments also provided for in the contract.