Occupancy Rate of Corporate Offices in Rio de Janeiro Remains Below 70% of Available Area

The high-end office market (Classes A+ and A) in Rio de Janeiro ended the third quarter of 2020 with a vacancy rate of 31.8%, according to the real estate research platform SiiLA. This result reflects several factors that negatively impact the corporate office market in Rio de Janeiro, including the successive crises that the state has been facing and the COVID-19 pandemic.

In the past three months, several companies have returned office spaces in the city. With a market of just over 3 million square meters, returns such as Stone Pagamentos, which vacated nearly 5,500 square meters in Bay View (Centro), have had a significant impact on the market indicators. This was the largest area returned during the period, which also saw the departure of BNDES from Ventura (2,000 square meters). It is worth noting that earlier in 2020, Stone leased space in Passeio Corporate, where it currently concentrates its operations.

On the other hand, Petros started leasing 2,000 square meters in Ed. Porto Brasilis, also in Centro, and Brasil Plural occupied an additional 1,200 square meters in Centro Empresarial Rio - Argentina (in the Orla region).

With the possibility of further reductions in the operations of state-owned and mixed-capital companies such as Petrobras in the coming months, the vacancy rate for these spaces is expected to increase again.

No new office stock deliveries are scheduled. This situation highlights the severity of the crisis that has persisted in recent years, as a healthy market would typically reduce vacancy as new areas are no longer incorporated.

ABOUT SiiLA

SiiLA Platform: The Reference in Real Estate Intelligence

Since 2015, SiiLA (Latin American Real Estate Information System) has been providing the most comprehensive commercial real estate intelligence platform in Latin America. It is recognized as a reference for market indices in Brazil and is adopted by major industry players.

The trust of industry stakeholders is the result of a revolutionary approach to monitoring the real estate market, which is more transparent, precise, and standardized based on market movements. The platform offers dozens of searchable and combinable filters that generate comprehensive property and occupancy reports, with direct download capabilities.

To ensure greater data analysis efficiency, SiiLA introduced a differentiated standard for the classification of corporate and industrial properties (Classes A+, A, B, and C) to the Brazilian market. In addition, an innovative mapping approach was developed for these regions and specifically for the retail market.

In the mall segment, SiiLA also introduced the concept of the "GROCS index" (Gross Rent Occupancy Costs), which provides an easy and fast way for players to analyze the performance of gross occupancy costs in shopping centers. The GROCS rate is calculated as a percentage based on the actual rental value paid by the tenant, plus the condominium and promotion and advertising fund (FPP) expenses, divided by sales.

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Subscribers to the platform have unlimited access to the most comprehensive database in the market. Users benefit from mapping commercial properties throughout the country (corporate, industrial, and malls), property specifications, tenant roster (with area and unit per tenant), occupancy rates, condominium fees, and property tax values, detailed transaction information including values, cap rate analysis, buyer and seller data, and Real Estate Investment Trust information.

The 100% digital platform, developed in the cloud, is powered by top researchers who utilize advanced statistical methodologies and cutting-edge technology, combining field surveys and documentary research. Since SiiLA does not engage in property sales or intermediation, it can provide accurate and unbiased.

Quarterly Research

All this accumulated intelligence allows us to quarterly disseminate real estate statistics, providing information on vacancy and absorption rates, delivered stock, total stock, and other relevant parameters. This entire database can be operated by users through Google Maps or a chart creation tool, allowing filtering by class, market, property type, and more.

The interactive office maps offer 14 million square meters mapped with properties in the cities of São Paulo, Rio de Janeiro, Brasília, Curitiba, Campinas, Belo Horizonte, and Porto Alegre.

In the logistics condominium segment, the interactive maps provide information on properties spread across 16 Brazilian states, totaling 17 million square meters registered.

Among shopping centers, the extensive database provides information on over 600 developments throughout Brazil. On the platform, in addition to asking prices and user data, customers can access closed transactions with transaction values (total and per square meter), area, grace periods, and other details.

New Markets

After the success of SiiLA in Brazil, the company is already operating in the Mexican market and is now preparing to soon open an office in Colombia.