Office-to-Residential Conversions Gain Ground in Brazil’s Major Cities

Historic office towers are being transformed into housing as vacancy rates rise and cities push to bring life back to their downtowns

Andre Kiffer, CEO of Inti Empreendimentos, the company that purchased the Mesbla building

By: SiiLA News

07/30/2025

The conversion of corporate buildings into residential units has moved beyond isolated cases and is now consolidating as a recurring strategy in Brazil’s largest capitals. In recent weeks, the building that for decades housed Telefônica’s headquarters on Rua Bela Cintra in São Paulo was sold for R$ 255 million and is set to undergo conversion into housing — another chapter in a movement reshaping the country’s urban centers.

This shift is far from isolated. As Cláudio Hermolin, President of SINDUSCON-Rio, highlighted in the latest episode of the SiiLA PODCAST, the trend is already evident in downtown Rio de Janeiro, where historic properties are being adapted to welcome new residents and revive the vitality of the area.

A striking example is the Mesbla Building, an art déco landmark with a 100-meter clock tower, sold in January by São Carlos for R$ 21.7 million to Inti Empreendimentos. The conversion project, part of Rio City Hall’s Reviver Centro program, aims to attract new residents and requalify the downtown area. São Carlos, however, retained ownership of the ground-floor retail spaces.

“INTI’s decision to choose the building that once housed the former Mesbla store—now known as the ORA building—was driven by its symbolic and strategic value. It’s an iconic property, filled with emotional memories, and part of the emotional landscape of many Rio residents. [...] Turning this city landmark into a residential project is a way of reimagining downtown Rio while preserving its essence in a space that already belongs to the city’s collective memory,” says Andre Kiffer, CEO of Inti Empreendimentos.

The reconfiguration of these properties responds directly to persistent vacancy rates and the aging of office stock in the central areas of São Paulo and Rio. Data from SiiLA’s Market Analytics show that vacancy in São Paulo’s downtown has been on the rise for nearly a decade, with Rio facing an even more acute scenario. At the same time, demand for well-located housing is growing, fueled by public incentive programs and a push for more dynamic and livable cities.

By: SiiLA

Following their sale, these assets may take different paths. Some buildings are demolished to make way for traditional residential projects; others undergo retrofits, transforming into multifamily properties — as seen with the Hotel Glória, acquired by Brookfield in Rio.

In São Paulo, Apê Smart has been scaling up such initiatives. In addition to leasing the Oscar Americano Building on Avenida Paulista in 2023, the company has adapted other properties in the area, including a building at Avenida Paulista, 7, No. 2240, once classified as a Class C office property, as well as a tower at Rua Bela Cintra, 934, which also transitioned from Class C offices to residential use. According to the company’s website, the goal is to provide studios for short- and mid-term stays.

Public Incentives

In São Paulo, the Requalifica Centro program, launched in 2021, offers tax breaks and zoning flexibility for buildings constructed before 1992, encouraging their conversion into residential units. The aim is to expand housing supply and counteract the vacancy crisis deepened by the pandemic.

In Rio, the Reviver Centro initiative takes a broader approach, combining urban, cultural, and social incentives to attract new residents, revitalize vacant properties, create green areas, and promote sustainable mobility.

“Downtown Rio is undergoing a consistent revitalization process, which is already being noticed by both residents and investors. There is growing demand for well-located properties with high appreciation potential and strong appeal for short-term rentals, which reinforces the strategic interest in new developments in the area,” says Kiffer.

An Urban Response to a New Reality

From Rio to São Paulo, the conversion of aging office buildings into housing is not only a solution for underutilized properties but also a response to the realities of contemporary urban life — from the digitalization of work to the shortage of affordable housing and the desire for more integrated, vibrant cities.

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