"The main stimulus for the development of commercial properties is the GDP [Gross Domestic Product]. If Brazil starts to recover, the vacancy will be absorbed by the strength of the market. When we start to deliver the projects, the moment will be more favorable in relation to the demand", believes Lucio Junior, president of the developer.

Since the beginning of the pandemic, the segment has been impacted by the growth of the remote work scheme and the tenants' crisis. This year, the new inventories expected to enter the São Paulo market make the scenario more challenging for large corporate slabs owners.

According to Giancarlo Nicastro, president of SiiLA, considering the long cycle of the sector, this is the time for developer companies to seek land for new projects. Due to the volatility that the market is still in, Nicastro considers it preferable that the construction of projects start in six months or a year.

A survey by SiiLA shows that, in the first quarter, a new stock of 45,678 square meters of classes A + and A around the key regions of São Paulo. The vacancy rate increased from 19.1% in the fourth quarter to 21.2%. Returns also surpassed contracts by 31,082 square meters, a record level of negative net absorption. Itaú drove the largest number of devolutions. Before the pandemic, the bank had already decided to reduce the controlled areas. Market uncertainties have also contributed to the number of tenants devolving previously controlled areas.

Source: Valor Econômico

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