SiiLA Event Explores the Outlook for Brazil’s Corporate Real Estate Market

Later, SiiLA CEO Giancarlo Nicastro moderated a panel on the office market featuring Bruno Chohfi, Director at CH3, Natalia Landi, Vice President at Patria, and Paula Casarini, Managing Director at Colliers Brazil.

The discussion began with Nicastro presenting data on A+, A, and B-class office markets across São Paulo’s core business districts, paying special attention to the Faria Lima corridor — home to some of the highest Market Rent in the country.

Natalia Landi noted that although the prices in the area have surprised some tenants, the region has set a new standard.

“When last year’s rent reviews came around, there were still tenants paying R$180 per square meter — figures that no longer make sense for Faria Lima. Despite the initial shock of rents surpassing R$300 per square meter, the market has understood that being here is a strategic differentiator. If companies want to stay, they’re willing to pay for it,” she said.

Paula Casarini echoed Landi’s view, emphasizing that Faria Lima is a “market for the few,” where the heavy presence of financial, insurance, and real estate (FIRE) companies also boosts demand in neighboring districts.

“The area’s influence spills over into adjacent neighborhoods like Itaim, where buildings like Infinity Tower are great examples. There’s a constant demand for well-located spaces with the right floorplates, especially in places like Itaim and Rebouças. While Chucri Zaidan can sometimes compete, when it comes to location, Faria Lima still reigns supreme,” Casarini added.

Bruno Chohfi pointed to retrofitting as a cost-effective strategy for entering premium markets, citing the Bravo! Paulista project as an example.

“Often, the most practical and affordable way to establish a presence in dense areas is through retrofitting. A class B or lower-rated building can, after renovations, be upgraded to meet the requirements of major corporations,” he explained.

The panel also tackled the growing demand for flexible lease terms, which companies increasingly seek as they adapt to new work models. Casarini noted that the market has been moving away from long, rigid leases, with businesses favoring contracts that offer more agility and freedom.

Landi, however, pointed out that this flexibility doesn’t apply uniformly across all regions.

“In Faria Lima, we seek predictability. Nobody wants surprises in such a consolidated market. In areas with higher vacancy, however, landlords tend to be more open to negotiation to avoid empty spaces,” she observed.

Chohfi added that shorter lease terms reflect the ongoing search for the ideal office model amid hybrid work trends.

“We’re still in a trial-and-error phase. Companies oscillate between remote and in-office setups, but the desire to maintain a physical space — to nurture culture and strengthen teams — is still very much alive.”

Another key topic was the shift of companies toward emerging areas. Landi highlighted that while Faria Lima remains the city’s financial hub, neighborhoods like Pinheiros and Rebouças are increasingly drawing tech giants — including Amazon and Netflix.

“We’re already seeing a dispersion trend. Rebouças and Pinheiros, for instance, are becoming technology hubs. Vila Leopoldina is also drawing attention, especially for its large plots and infrastructure suited for corporate campus models,” she said.

Casarini added that Vila Madalena is another neighborhood gaining traction, offering a more relaxed environment away from the pressures of traditional corporate districts.

Finally, the panel addressed the limited supply of large-scale office properties. Casarini pointed to Amazon’s decision to pre-lease the entire Biosquare building, a single-tenant property, after recognizing the difficulty of finding large vacant spaces in São Paulo.

“Imagine trying to find a 40,000-square-meter vacant building in São Paulo — it’s extremely rare. Amazon saw the opportunity and acted on it. Looking ahead to 2026 and 2027, how many buildings of that size are actually in the pipeline? Maybe four, no more than that. Supply remains very tight,” she concluded.