The commercial real estate market in Brazil proved resilient despite the disruptions of the pandemic. Since 2022, companies have been rethinking their corporate office spaces as hybrid and flexible work models gain traction. According to data from the Market Analytics platform, coworking companies currently occupy approximately 253,000 square meters in Class A+, A, and B office buildings in São Paulo monitored by SiiLA.

Tiago Alves, CEO of IWG (International Workplace Group) in Brazil—one of the leading companies in the sector—shared insights in an exclusive interview with REsource on how flexible spaces have become an attractive solution in recent years.

“The coworking market in Brazil has grown by 20%, compared to a 40% increase globally. Flexible lease models with shorter terms and ready-to-use spaces are proving to be a more advantageous option, allowing companies greater agility and adaptability to market demands,” Alves explained.

High traditional office leasing costs and penalties for breaking long-term contracts are pushing businesses toward flexible solutions. Changes in work habits are also driving this trend. In São Paulo, for instance, office attendance peaks on Tuesdays, Wednesdays, and Thursdays, while Mondays and Fridays see less activity.

This trend is not unique to Brazil. A recent Morning Consult study conducted with over 3,000 workers in the United States found that among the 65% who work on-site, 46% prefer a hybrid model.

 "Companies are increasingly expanding their talent search beyond traditional markets," Alves noted. "They now have the opportunity to hire professionals in regions previously considered inaccessible due to high commuting and office maintenance costs." However, he added that retaining this talent requires addressing new employee expectations, especially as workers are less willing to spend hours commuting across cities.

Flexible workspaces offered by Alves’ company have emerged as a strategic solution for businesses. With locations spread across major urban areas, employees can select workstations close to their homes or other convenient spots, aligning with the growing demand for flexibility.

• Read also: Amazon Joins List of Companies Requiring Full Return to the Office; Demand for Corporate Spaces Remains High