In 2019, the upscale office market in São Paulo's main corporate districts boasted its highest occupancy rate since SiiLA began monitoring – a staggering 83.9%. Fast forward to the present, and the sector has undergone a profound transformation due to the repercussions of the Covid-19 pandemic. With remote work becoming the norm for administrative and non-essential service teams throughout 2020 and part of 2021.

The vaccination rollout has gradually reopened the economy. In-person work has resumed cautiously in offices, with restrictions, spaced workstations, and reduced daily staff numbers.

As teams adapted to hybrid work, companies found themselves restructuring environments to meet the evolving needs of both employees and corporate strategies. Simultaneously, organizations with tight budgets took advantage of remote work to return leased office space, leading to a peak office vacancy rate of 24.7% in São Paulo during Q3 2021.

The subsequent year, 2022, witnessed companies adjusting to the new normal, reconfiguring spaces to foster collaboration and creativity. The last quarter of the year marked a decrease in vacancy rates to 21.9%. What about 2023? Throughout this year, the rate fluctuated slightly, settling at 23% by the end of Q3. There has been a notable shift in occupational trends over the past few years, and data from the SiiLA Market Analytics platform indicates a robust demand for office space, although companies are now opting for more compact areas compared to the pre-pandemic era.

This was a discussion that took center stage in a presentation by Giancarlo Nicastro, CEO of SiiLA, during a panel at River One as part of the "Office Trends 2024" conference held on the last Thursday, 30. "Contrary to what many have speculated, offices are not going to disappear. A corporate space is crucial for business development, teamwork, innovation, among other fundamental pillars of companies. However, flexibility and hybrid work will persist, with a significant number of companies already readjusting their workspaces. Today, companies are already looking for spaces for 50% of their total workforce, incorporating rotating desks and more collaborative spaces. Offices are being designed with hybrid work in mind, with a rotation of workstations including days of remote work," comments the executive.