Occupancy Rates Rise for Premium Offices in Downtown Rio de Janeiro

Downtown Rio stands out in Q3 2024 with a lease by Ipiranga, a fuel distribution company, at Ventura Corporate Towers.
Barra da Tijuca, Cidade Nova, and the Waterfront recorded negative absorption during the period.

Leonardo Linden, CEO of Ipiranga, the company that leased the most office space in Rio de Janeiro during the third quarter

By: SiiLA News

10/30/2024

In Q3 2024, Rio de Janeiro saw a slight improvement in occupancy for A+ and A-class assets, driven by leases in Downtown, which closed the quarter with a net absorption of 9,7 thousand m².

Led by CEO Leonardo Linden, fuel distributor Ipiranga secured the largest lease of the quarter, renting 4,1 thousand m² in the west tower of Ventura Corporate Towers. According to SiiLA analysis, the rental rate is around R$130 per square meter.

The second-largest lease of the quarter in Rio also took place at Ventura Corporate Towers, where Banco do Brasil rented 1,5 thousand m² in the east tower.

Outside Downtown…

Other regions of Rio de Janeiro showed a different trend from Downtown. Barra da Tijuca, Cidade Nova, and the Waterfront recorded more tenant exits than entries, resulting in negative net absorption of 311, 532, and 965 m², respectively. The Porto and Zona Sul regions saw no changes in leasing activity for A+ and A class office spaces during the period.

Source: SiiLA

Two notable leases outside of Downtown this quarter included power company Light, which leased 2,5 thousand m² at Centro Empresarial Botafogo, and educational institution Estácio, which occupied 1,8 thousand m² at Office Park Center.

Subscribers to SiiLA’s Market Analytics platform can access detailed entries and exits of tenants in Rio’s premium properties!

Outlook and Expectations

SiiLA Market Statistics reveal that Rio’s net absorption reached 21,119 square meters by Q3 2024, surpassing the total for 2023, which saw a net absorption of 17,689 square meters.

In recent years, Rio’s office market has been significantly impacted by tenant exits. Historical data from Market Analytics shows a negative net absorption of 45,000 square meters in 2021. In contrast, 2022 recorded a positive balance, reaching 39,728 square meters.

Furthermore, the city faces a shortage of new premium properties, with the last delivery of an A+ or A-class property occurring in 2018, adding 13 thousand m² to the market.

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