SiiLA CEO Discusses Office Market Performance at Happy Hour Hosted by Office Connection in Brazil

On Tuesday, November 5, Giancarlo Nicastro, CEO of SiiLA, took part in the Happy Hour event organized by Office Connection. The event brought together leaders and influential professionals from the commercial real estate market at Casa Doimo, located in the Paulista area of São Paulo, in Brazil. The main topic of discussion was the trends and challenges facing the office sector in Brazil. 

During the informal and interactive gathering, Nicastro shared data and insights from SiiLA regarding the office space occupancy in São Paulo. 

Nicastro’s presentation covered several key points, including the decline in vacancy rates in office buildings within São Paulo's central business districts (CBDs). By the end of the third quarter of 2024, the vacancy rate had dropped to 19.49%, compared to over 20% in 2021, 2022, and 2023. 

Another topic of discussion was the shift in demand for different types of office spaces, with a growing interest in smaller and more flexible floor plans. “Occupancy dynamics have changed with the rise of hybrid work, and today tenants are looking for smaller, more efficient spaces,” Nicastro explained. 

Exclusive analysis from SiiLA shows that, by the third quarter of 2024, gross absorption in office spaces within São Paulo’s CBDs reached 526,000 square meters. This number exceeded the total gross absorption for all of 2023, which stood at 399,000 square meters. “This is a clear sign of the office market’s recovery. There’s been a lot of talk about remote work, but the reality is that companies still need headquarters and physical spaces for their operations,” Nicastro stated. 

Giancarlo also highlighted the significant number of leases for smaller office spaces, under 1,000 square meters. SiiLA data revealed that nearly half of the total gross absorption—230,000 square meters—was in office spaces of up to 1,000 square meters. “The market for smaller floor plates continues to attract tenants, who are seeking to make their corporate space more efficient,” he noted.