Felipe Laragnoit Leite, Partner at Primaz&Co, notes that the surge in prices is strongly tied to supply-and-demand dynamics, combined with construction restrictions in the area.

“The rise in rental values in major areas like Faria Lima is essentially driven by supply and demand, and particularly by construction restrictions, such as CEPAC rules, that apply there. In other words, new projects are very limited, with few deliveries, and as a result, rents keep rising based on the natural dynamics of the market. Faria Lima, specifically, has consolidated itself as a kind of brand. It’s not just about the quality of the buildings, but also the prestige of the address. Often, financial-market companies, like asset managers, insist on having Faria Lima on their business cards because it impacts their business and brand. For that reason, they don’t give up the region and are willing to pay very high values — reaching R$ 300 and, in some cases, even R$ 400/sqm,” he explains.

Not everything is positive. With sharply rising rents, some companies may choose to leave the most expensive districts. On Faria Lima, for example, in the second quarter of 2025, there was a negative net absorption of 5,500 sqm in Class A+ and A assets.

This wasn’t the first time such a movement occurred. In the first quarter of 2024, the district also registered an exodus of tenants: companies such as Pirelli, SulAmérica, X and others decided to migrate to areas with more affordable prices.

Even so, that didn’t prevent Scotiabank from renewing its contract at R$ 400/sqm , or Banco Master from expanding its footprint there. Faria Lima has consolidated as Brazil’s financial hub, and the trend is that companies outside this sector will leave the area, concentrating instead in adjacent districts.

“There is a ceiling that some companies can afford. Sometimes an executive wants to be on Faria Lima, but the company has budget constraints. This is very common among large corporations in industries outside the financial sector. These tenants, which demand very large areas — 5,000, 10,000, 15,000 sqm — often can’t sustain Faria Lima’s rental levels, which today reach R$ 300 or even R$ 400 per sqm That’s why the trend is for such companies from other industries, still located in the district, to eventually migrate to nearby areas where costs are more viable,” says the executive.