Setting the Price per Square Meter in Commercial Properties. Case Studies to be Presented at SiiLA ACADEMY

The price per square meter of commercial properties stands as one of the most widely debated topics within the real estate market. Whether it's related to construction, renovation, occupancy, sale, or lease, this value serves as a pivotal indicator for all participants in the real estate cycle, encompassing property owners, investors, and tenants.

According to Market Analytics data, the average asking rent for office properties is R$ 78.05 per square meter, while the average requested rental price for logistics properties is R$ 23.60 per square meter.

Price Dynamics

The cost per square meter for buying and leasing commercial properties can fluctuate significantly based on factors like location, property infrastructure, regional demand, specific property attributes, and market trends. This holds true for both office spaces and logistics properties.

In highly developed and business districts such as financial districts and bustling neighborhoods, the per square meter price for an office space tends to be higher, reflecting the strong demand for commercial real estate. Conversely, in less bustling or developing regions, per square meter prices can be more affordable.

The quality of facilities and property infrastructure also plays a pivotal role in determining the price. Characteristics like size, layout, condition, amenities, accessibility, and parking can have a notable impact on the per square meter value.

Determining the Price

Price isn't a fixed metric, but rather a dynamic assessment that ebbs and flows with market changes. Macroeconomic factors such as interest rates, economic growth, and commercial space demand can also exert influence on prices. Property owners and investors consistently monitor these factors to make well-informed decisions regarding rental and sale prices, as well as investments in commercial real estate.This subject will be extensively covered in the third session of SiiLA ACADEMY, in both the Logistics and Office modules. The live and online course is designed to equip beginners and professionals with progressively strategic acumen within the commercial real estate sector.

In the Industrial module, the lecture will be delivered by Bruno Ackermann, partner at cy.capital. Holding a degree in civil engineering from FEI and an MBA from FGV, Ackermann embarked on his career journey at Cyrela Brazil Realty. With extensive sector expertise, he has also held roles at Brookfield Properties and Barzel Properties. In 2021, he returned to Cyrela to establish cy.capital.

In the Office module, the invited educator is Bruno Fonseca, Partner at Grow Real Estate Investments. His professional trajectory includes stints at Brookfield Financial, Grupo EBX, and SAP Ariba. He holds a degree in Administration from the Federal University of Rio de Janeiro (UFRJ) with a focus on finance and control, Fonseca contributes rich insights to the course.

Recently, two in-depth breakdowns of the lesson plans have been released. Explore the Logistics module details here and delve into the Office module specifics here.