The Cost of an Empty Desk: Each Employee on Faria Lima Costs More Than R$2,000

In a market the size of Faria Lima, even small changes in occupancy rates can have multimillion-real effects. Each percentage point of the total inventory represents approximately 7,900 square meters—enough space to accommodate around 1,126 people.

In financial terms, that single percentage point is equivalent to a potential occupancy cost of R$2.43 million per month, or R$29.18 million per year.

Reducing the vacancy rate from 8.8% to 7.8%, for example, would bring nearly 7,900 square meters back into use. In addition to generating real estate revenue, this occupancy could increase foot traffic and demand for retail, dining, transportation, and services throughout the district.

An office may be listed as occupied in market reports while remaining partially empty for much of the week. This happens when a company maintains more workstations than its operations actually require.

This space is not counted as real estate vacancy because there is an active lease in place. Financially, however, it functions as internal vacancy: the company continues to pay rent, common-area maintenance fees, and property taxes for space that is not being used.

On Faria Lima, this waste is particularly expensive. Ten empty workstations cost approximately R$259,000 per year. One hundred underused workstations push that figure to nearly R$2.6 million annually.

Empty space, therefore, is not cost-neutral. Even when no one is sitting at a desk, rent remains due, maintenance fees continue to be charged, and property taxes still apply.

The rise of hybrid work has made this discussion even more relevant. In the past, the relationship between the number of employees and workstations was relatively straightforward. Now, some teams come into the office only on certain days, while companies continue paying for the entire space throughout the week.

If every workstation is used daily, the estimated cost is R$2,159.57 per person per month. But if only half of them are occupied on a typical day, the cost per workstation actually in use can double to approximately R$4,319.14.

For a company with 1,000 workstations, the estimated real estate cost is R$2.16 million per month. If only 500 are regularly used, the company will continue paying for the entire space, but the effective cost per person present will be twice as high.

As shown, vacant space comes at a significant cost. One example on Faria Lima is Bradesco, which occupies 100% of International Plaza I. Classified as an A+ property, the building has approximately 16,200 square meters of leasable space. Its market rent is R$291.93 per square meter, while common-area maintenance fees total R$30.83 per square meter and property taxes amount to R$9.02 per square meter.

Combined, these three components result in an occupancy cost of R$331.78 per square meter per month—7.5% above the average of R$308.51 per square meter calculated for Class A+, A, and B buildings on Faria Lima.

In February of this year, the financial institution announced its return to in-person work. Based on an allocation of one person per 7 square meters, each workstation at International Plaza costs approximately R$2,322.46 per month, or R$27,869.52 per year, considering only rent, property taxes, and common-area maintenance fees.

Ten empty workstations at International Plaza represent a cost of nearly R$279,000 per year. One hundred unused workstations cost approximately R$2.79 million annually.

The address may be strategic, the building may be high-end, and the office may strengthen the company’s image. But none of these factors eliminates the cost of underused space.

After all, in a market where each workstation can cost more than R$25,000 per year, failing to use an office to its full potential literally means wasting money.