According to the Market Analytics platform, an intelligence tool for the commercial real estate market, the total office space stock in Brazil crossed the 14 million square meter mark at the turn of 1Q23 to 2Q23. The sector's data and statistics are compiled and analyzed quarterly by a team of researchers from SiiLA.

At the end of 2Q23, the office market reached 14,038,390 square meters, with the majority of assets concentrated in São Paulo (62%) and Rio de Janeiro (21.5%), considering classes A+, A, and B. Besides São Paulo and Rio, Brasília (DF), Campinas (SP), Curitiba (PR), Porto Alegre (RS), and Belo Horizonte (MG) are also significant markets monitored by SiiLA.

In addition to the main indicators and statistics of the office market, SiiLA also monitors the tenants of commercial buildings. The top 3 sectors of the economy occupying offices are Finance, Administration, and Public Services, and Information Technology.

In São Paulo alone, there are more than 20 mapped regions and over 8.7 million square meters of total stock. The forecast indicates that the São Paulo market will continue to grow this year. SiiLA is monitoring an additional 162,000 square meters in future stock in the state, with most of the new office areas planned for regions like Pinheiros, Faria Lima, Jabaquara, Alphaville, and others.

Why do these regions keep growing? According to Giancarlo Nicastro, CEO of SiiLA, it is a combination of factors that act on the main corporate regions (known as CBDs in market jargon), turning them into magnets to attract more companies, ensuring continuous demand.

"The primary reason is the location, which is the golden rule of the real estate market. CBD regions are typically situated in areas with developed infrastructure, easily accessible by public transportation and main avenues, facilitating the commuting of employees, meetings with clients and partners, and often offering services and amenities nearby, which act as significant advantages, providing more convenience in the already bustling city life", exemplifies the CEO of SiiLA.

"Offices tend to cluster, fostering an environment of networking and innovation", he adds. Nicastro teaches the SiiLA ACADEMY Offices course and delves into this topic deeply in the lecture on location and key office markets. "Large companies seek established addresses in prestigious regions to set up their operations."

There are also other factors involved, such as ease of hiring skilled labor, tax benefits, and incentives that may be granted by the government to promote the development of specific areas. To learn more, join the waiting list to participate in the next edition of SiiLA ACADEMY!

SiiLA's clients have access to data and statistics from markets monitored by the Market Analytics platform, such as vacancy rate, average asking price per square meter, tenant board, transaction cap rate, and more. The solution is versatile and modular, allowing subscribers to choose the regions they need to access, serving a range of customer profiles, from investors, brokers, developers, commercial asset owners to appraisers and service providers. Request a free demonstration to understand how the solution can add more intelligence to your business!