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New Multifamily Business Model Targets Corporate-Funded Residential Leases
- The residential model is attracting companies seeking alternatives to hotels; in São Paulo, the number of units has grown 27% in less than a year
By: SiiLA News
06/18/2025 The multifamily market, traditionally aimed at families, students, and travelers, is now starting to attract companies. While this application may seem unusual at first glance, some firms are turning to residential units as an alternative to extended hotel stays—particularly for executives and employees on temporary assignments or short- to medium-term projects.
Brazil currently has 12,300 multifamily units, with 84.4% concentrated in São Paulo, the country’s largest city. The number of units in the capital has grown 27% in less than a year, rising from 8,200 in Q2 2024 to 10,400 in Q1 2025. And this pace is expected to continue: another 1,900 units are scheduled to come online in the city over the coming months.
How do corporate leases work?
Just like commercial office leases, when companies rent units in residential buildings, the contracts are legally considered non-residential leases. This definition is outlined in Article 5 of Brazil’s Tenancy Law (Law No. 8,245), which states:
“A lease is considered non-residential when the tenant is a legal entity and the property is intended for use by its owners, directors, partners, managers, executives, or employees.”
In other words, the legal nature of the contract is determined by the tenant’s profile—not the property type. However, another common arrangement is for the employee to rent the unit directly and later seek reimbursement from the company.
A practical example
A recent example is the lease signed by JFL Living at the Alto das Nações complex in São Paulo. The company leased five floors of the AV.NU building for R$28.1 million. The three-year contract follows a long-stay model, closely resembling a traditional residential lease, even though it was signed by a corporate entity.
Currently, developments exclusively focused on long-stay rentals represent 15% of São Paulo’s multifamily stock, according to the company. When including properties that operate under a mixed model—with both short- and long-term units—the share rises to 32.8%.
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