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São Paulo Offices Take Around 9 Quarters to Reach Their Lowest Vacancy After Delivery

  • Data from SiiLA shows that CBD areas set the standard, but also indicates that less central regions are developing as well.
Leonardo Galvão, CEO and Chairman of Mover Participações, a conglomerate formerly known as Grupo Camargo Correa. The company is part of the holding Morro Vermelho Participações, owners of the São Paulo Corporate Towers.
Leonardo Galvão, CEO and Chairman of Mover Participações, a conglomerate formerly known as Grupo Camargo Correa. The company is part of the holding Morro Vermelho Participações, owners of the São Paulo Corporate Towers.
By: SiiLA News
09/17/2024

Today, São Paulo is the largest office market in the country, with 8.8 million square meters, representing 62.5% of the entire Brazilian stock of Class A+, A, and B assets. A study by SiiLA shows that over the last eight years, 17.3% of the total national stock was delivered in São Paulo alone.

The analysis conducted by SiiLA's intelligence team revealed that 1.6 million square meters were delivered since 2016 and that, on average, it took around nine quarters for the delivered properties to reach their lowest vacancy.

The methodology applied considered deliveries from 2016 to 2022. The analysis tracked the performance of newly delivered assets until the first tenant departure, at which point they lose their "new" status.

In addition to calculating the average time for absorption to reach its lowest vacancy, the analysis identified the delivery pace of these assets, with peaks in 2016 and 2018, and the lowest delivery in 2019. See the chart:

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