Even with 47.8% single-tenant occupancy, boutique buildings in São Paulo face high vacancy

Smaller in size but equipped with all the technology of Class A+ assets, boutique buildings experienced a surge in new developments in 2024. According to SiiLA's market intelligence team, São Paulo's boutique office stock totals 155 thousand m², with 49% of that being delivered over the past year. 

In 2024 alone, 75,9 thousand m² of these properties were completed, including standout developments such as Waldyr Beira, Corporate Garden, and Capote 210. However, this increase in supply does not necessarily mean that all spaces are being occupied. 

The fact that many of these buildings are designed for single tenants poses a leasing challenge, reflected in a vacancy rate of 48.4%. SiiLA’s data indicates that 47.8% of boutique buildings are, in fact, occupied by a single tenant. The analysis covers 28 assets located in the capital.

Less than half of boutique office buildings are fully occupied by a single company. The data reveals that 34.7% of the assets remain entirely vacant, while 39.1% have multiple tenants or still have available space for lease.

Two contrasting examples are White 2880 and HL Faria Lima. The former, a 6,9 thousand m² building, is fully occupied by Stone Pagamentos, while the latter, with 5,8 thousand m², houses 22 tenants.

• Read more: Boutique Office Boom Rises the Question: What Exactly Constitutes a Boutique Office?