Last Friday, Giancarlo Nicastro, CEO of SiiLA, participated in a live session with Clube FII, where he presented SiiLA's data and discussed property valuation methodologies, real prices, and transparency in lease and sale transactions with Arthur Vieira de Moraes, partner and head of education at Clube FII. 

The conversation began with Moraes and Nicastro addressing SiiLA's new methodology: the market rent. Nicastro explained how this metric emerged and highlighted the limitations of considering only the "asking price" as a market benchmark. 

“What happens is that the market has always relied on a concerning metric from the perspective of those who analyze and make decisions, which is the infamous asking price. This metric has some problems. The main one is that it only captures the supply, but that doesn’t necessarily represent the actual price paid. Another issue arises when we conduct research in a particular building and there’s no floor or unit available. That property ends up being excluded from the asking price sample because there’s no availability, which happened, for example, in Faria Lima,” explained Nicastro. 

He also pointed out that, due to low vacancy in Faria Lima, the available properties in the area are usually older and less sought after, with lower prices. Nicastro emphasized that analyzing only the asking price is inadequate for determining the true value of a region. 

“Every real estate investor wants to know how much their asset is worth. It’s a question I’ve been asked since founding SiiLA. That’s why we created a methodology called Market Rent,” added the CEO. 

The Market Rent takes into account the specifications of the assets, vacancy levels, asking prices, current contract values, as well as regional factors of similar assets and overall vacancy rates. 

During the conversation, Nicastro and Moraes also discussed the coworking sector, the industrial property market, and the office landscape in Brazil.