Foreign Companies’ Exit Raises Concerns Over Property Occupancy in Brazil

Factory closures and multinational reorganizations have yet to put pressure on overall vacancy rates, but they could foreshadow weaker corporate demand for real estate

Christian Egan, CEO of B3

By: SiiLA News

08/26/2026

The withdrawal of foreign capital from Brazil’s stock market in August, totaling R$20 billion, has raised a warning that could extend beyond financial markets. As investors reduce their exposure to Brazilian assets, some multinationals have also begun to review their operations in the country, closing facilities, consolidating operations and selling businesses.

In real estate, the effects are still limited. But they may take longer to emerge.

One of the most recent cases is German company Haribo. The confectionery manufacturer shut down its industrial operation in Bauru, in the interior of São Paulo, along with its administrative structure. Around 150 workers were affected. The company will continue serving the Brazilian market, but without the production structure it maintained in the country.

Toyota also ended production at its Indaiatuba plant in June, after 28 years. The automaker remains in Brazil and transferred production to Sorocaba, but the move leaves behind a large industrial facility whose future use has yet to be defined.

It is not only complete exits that can have an impact. Other moves may produce slower effects.

Premium ice cream brand Häagen-Dazs is leaving Brazil after nearly 30 years, highlighting the loss of attractiveness that foreign companies may be experiencing in the country.

General Mills, which owns Häagen-Dazs, decided to sell its Brazilian operations to Grupo 3 Corações. The strategic plan also includes the sale of the Yoki and Kitano brands to the group for R$800 million. Meanwhile, Sanofi negotiated the sale of Medley to EMS.

Despite these transactions, the operations remain active and therefore do not represent an immediate increase in vacancy. However, acquisitions are often followed by reviews of corporate structures, administrative overlaps and the consolidation of operations.

Exits, reductions and cancelled expansions in Brazil

The impact has yet to show up in vacancy rates

For now, the main real estate indicators remain strong. However, a closer look reveals a significant number of foreign companies reducing their footprint in Brazil.

Vacancy rates for high-end office space in São Paulo remain low, while the logistics market operates at even lower rates. Large leases signed by companies such as Mercado Livre, Shopee and Amazon are helping sustain demand.

But according to SiiLA’s Market Analytics platform, a pattern is beginning to emerge. Looking only at the first six months of 2026, ID Logistics was the international company that reduced its occupied space the most, with 33,700 square meters.

Food multinational Dr. Oetker also recorded a significant reduction, totaling 11,200 square meters. AutoZone, Unilever, AT&T and others have also reduced their occupied space.

As economic, fiscal and political uncertainties increase international investors’ caution toward Brazil, decisions regarding new headquarters, factories and distribution centers may also be postponed.

One of the clearest examples is ArcelorMittal. In 2024, the company suspended expansion work at its João Monlevade steel mill in Minas Gerais amid lower domestic demand and rising steel imports. In February 2025, the suspension became permanent after the company reassessed market conditions and its strategic investment plan in Brazil.

A similar move occurred at Ardagh Glass Packaging. The multinational halted plans to build its first Brazilian plant in Juiz de Fora, Minas Gerais, which was scheduled to begin operations in 2024 and create around 300 jobs. More recently, Atlas Renewable Energy, controlled by BlackRock’s Global Infrastructure Partners, suspended around US$1 billion in new energy projects in Brazil, citing restrictions imposed by curtailment and limitations in the power grid infrastructure.

Chinese company Meituan had announced R$5.6 billion in investments to develop Keeta in Brazil, but slowed its expansion in 2026, with layoffs and a delay in its entry into Rio de Janeiro as it concentrated operations in São Paulo.

Stock market reacts first

In financial markets, changes in perception occur quickly. Foreign investors withdrew more than R$20 billion from Brazil’s stock market in the first few weeks of August alone.

In the real estate market, decisions take longer. Lease agreements have long terms, factories cannot be relocated overnight, and headquarters relocations can take months.

The deterioration in perceptions of Brazil that is visible today in financial markets may take longer to reach the real estate sector. There is still no evidence of a broad-scale multinational exodus capable of driving a generalized increase in vacancy rates.

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