Net Office Absorption Surpasses New Supply in São Paulo for the First Time Since 2019

Data from SiiLA shows that despite over 240 thousand m² of new supply, net absorption still outpaced it—something that hadn’t happened since the pre-pandemic period

José Olympio Pereira is the CEO of Banco Safra, owner of Fidalga J Safra Corporate.

By: SiiLA News

02/28/2025

In 2024, for the first time since 2019, net office absorption for Class A+, A, and B buildings in São Paulo exceeded the volume of newly delivered developments, according to SiiLA's Market Analytics data.

Throughout the year, 241 thousand m² were added to the city’s corporate stock, while net absorption—the difference between new leases and space returns—reached 307 thousand m², a level similar to what was recorded before the pandemic.

These figures reflect a recovery in the market after the impacts of COVID-19, which led to two consecutive years of negative net absorption in 2020 and 2021.

By: SiiLA

Another key indicator, gross absorption, also returned to pre-pandemic levels, totaling 823 thousand m² of leased space.

Read More: Market Rent in São Paulo’s CBDs Rises 5.7% in 2024, Reinforcing Upward Trend

Regions with New Supply

Among the areas that saw new developments in 2024, Pinheiros led the way with 85 thousand m² added to the corporate stock. The standout project was the Fidalga J Safra Corporate, a Class A+ building delivered in December. Developed by Rocontec and Idea!Zarvos, the asset is owned by Banco Safra.

Barra Funda also saw significant growth, with 55 thousand m² delivered to the market. This increase came from a single development, the Arquipeo building, completed in October, which currently has a 29% vacancy rate.

Meanwhile, Tatuapé marked a milestone with the delivery of the first-ever Class A asset in São Paulo’s eastern zone. Almagah 227, developed by Porte Engenharia, was completed in August and already houses tenants such as Regus.

Full details on these developments and market trends are available on the subscriber-only Market Analytics platform.

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