Office Inventory in Minas Gerais Surges in Recent Years. Discover the Region's Major Developments
- Data from Market Analytics shows that over the last 13 years, the office market in Minas Gerais for Class A+, A, and B buildings has grown by 434%.
- The Pace of Growth in the Corporate Real Estate Market in Minas Gerais is Higher than in Other Regions
Minas Gerais is standing out due to the growing number industrial properties, especially in Extrema. However, its capital presents a relative volume of offices with a low vacancy rate. The region recorded a vacancy rate of 7.1%, with a net absorption of 1,996 m² in the last quarter.
According to data from SiiLA, available on the Market Analytics platform, since 2010, the market for Class A+, A, and B developments has grown significantly, increasing by 434%, jumping from 39,406 m² to 337,070 m². In comparison, during the same period, the office market in São Paulo grew by only 15%, going from 7.6 million m² to 8.8 million m².
One of the prominent developments in the Belo Horizonte metropolitan area is the imposing Concórdia Corporate, located in Nova Lima. This Class A+ building has 28,000 m² spread over 31 floors and was delivered in 2018, owned by FII Pedra Negra (FPNG11).
Another highlight is the Edifício Sede Localiza, also in Belo Horizonte, a Class A+ asset with 24,000 m². This building was specially developed for the car rental company Localiza, which previously occupied headquarters in separate buildings, according to information from the Gisele Borges Arquitetura office.
High demand for tenants leads to a low vacancy rate
The office market in Minas Gerais is one of the few Brazilian regions that saw a reduction in vacancy, even during the pandemic period. In 2019, the vacancy rate was 19%, dropping to 18.1% at the height of restrictions in 2021, despite the delivery of new developments. Currently, vacancy levels are at 7.1%.
According to occupancy statistics from Market Analytics, the FIRE (Finance, Insurance, Real Estate) segment is the largest occupier, representing 40% of total occupancy, followed by business products and services, with 22%. In third place are manufactured products.
Among the largest occupants, Localiza stands out, fully occupying the headquarters building that bears its name. In second place is Banco Inter, fully occupying the Aureliano Chaves building, with 22,000 m².
