Hybrid work reshapes office values across Brazil

From an investment perspective, hybrid work has ceased to be merely a behavioral shift and has begun to directly influence how risk and return are assessed in corporate assets. Raul Grego Lemos, portfolio manager at TRX Investimentos, shares his view:

“The advance of hybrid work has increased the level of selectivity in the risk analysis of office real estate investment funds (FIIs). Well-located, efficient assets aligned with new corporate demands now show a more resilient risk-return profile.”

In this new scenario, returns are no longer measured solely by rental value.

“Today, returns more meaningfully incorporate occupancy predictability and asset liquidity over time,” Lemos explains.

The focus shifts away from short-term gains toward long-term investment sustainability.

For the asset manager, hybrid work is not a passing trend but a structural transformation.

“The risk is not hybrid work itself, but an asset’s inability to adapt to this new usage pattern.”

Regarding older buildings, the assessment is clear:

“There is still room for them, but only if modernization takes place.”

In other words, to remain competitive, these properties typically require retrofits and upgrades to meet new user expectations. Otherwise, the risk of obsolescence and structural vacancy intensifies.

This dynamic has heightened market polarization.

“Prime assets have come to concentrate higher demand and liquidity, while secondary assets face additional challenges in occupancy and pricing,” the manager notes.

As a result, investors have increasingly prioritized quality, even if it comes with lower initial returns.

With this trend, the criteria for choosing corporate headquarters have also changed profoundly, shifting toward prioritizing well-being, spatial quality, and team integration as strategies to encourage in-person work.

“The corporate environment has always been driven by efficiency: how many people fit per square meter. Today, that question has changed. The goal is to create a qualitative work environment—pleasant spaces that offer different ways of working,” says José Luiz Lemos, partner at Aflalo Gasperini.

“You don’t work only sitting at your desk. You might be in a meeting room, a reception area, or an outdoor space. Creating a diversity of environments within the office has become a major demand.”

This shift reveals a new social role for the office, which now also serves as a space for interaction, exchange, and creative stimulation. Architecture emerges as a tool to create more human and flexible environments.

“In the past, the coordinator had a bigger desk, the manager had an office, and the director had an office with a meeting room. The trend now is to eliminate all of that. Everything becomes more uniform, with spaces designed for different dynamics.”

One example of this vision is Salma Tower, on Faria Lima Avenue:

“Bringing a garden to every floor is a clear expression of the search for a qualitative environment. You don’t need to go to a closed-off corner to breathe. You have a living space right there.”

Lemos also highlights changes in returns and liquidity for upgraded assets.

“This building has around 10% higher rental value. The average on Faria Lima is BRL 300 per square meter; there it reaches BRL 330. People are willing to pay for the garden.”

In addition, corporate image has gained importance.

“Being well integrated into the city is already a major differentiator. But it’s not just about location. Companies choose a building because they want to associate their image with quality and a certain worldview.”

In this new scenario, the office is no longer just a place to work—it takes on a strategic role in shaping company culture, identity, attractiveness, and financial performance.