Vacancy Rate Drops with New Tenants in Brazil’s Office Spaces; A Look at 3Q 2024
- Vacancy rate dropped more than 2 percentage points from 3Q 2023 to the current period in São Paulo’s CBD regions
Data from SiiLA's Market Analytics shows that vacancy in São Paulo’s CBD regions has fallen to 19.4%, with net absorption reaching 69,000 square meters in the third quarter—this year’s highest figure so far.
CBD, or Central Business District, refers to major commercial areas in urban centers, attracting owners, tenants, and investors alike. In São Paulo, SiiLA monitors 11 CBD regions: Berrini, Chácara Santo Antônio, Chucri Zaidan, Faria Lima, Itaim Bibi, JK, Marginal Pinheiros, Paulista, Pinheiros, Santo Amaro, and Vila Olímpia.
The largest lease of the quarter was by the airline GOL, which rented over 13,000 square meters in the Verbo Divino building, as previously reported on REsource. The second-largest lease was by Verisure, which occupied 6,900 square meters in the Jatobá tower of Parque da Cidade. Other quarterly highlights include Editora Globo, which leased four floors at River One, and Uber.
Big Picture
Vacancy in the CBD regions dropped by 2.15 percentage points compared to the same period in 2023, when the rate stood at 21.64%. Compared to the previous quarter (2Q 2024), the decline was 0.39 percentage points.
Even with this reduction, the current rates remain far from the record low vacancy of 13.8% registered in the first quarter of 2020. Since then, alongside the impacts of the pandemic, stock in these regions has increased by 589,000 square meters, equivalent to a growth of 10.3%.
New Stock
Office inventory in São Paulo grew this third quarter with the delivery of new developments. JK Square was the largest delivery, located in the Itaim Bibi region, near Juscelino Kubitschek and Santo Amaro Avenues.
This A+ class project has 31,000 square meters spread across 20 floors and will be part of a mixed-use complex.
In addition, the JHA Corporate Boutique building, also A-class and by RBR Asset Management, was delivered this quarter, also in Itaim Bibi. Additionally, three B-class assets entered the market during this period: two in Pinheiros and one in Vila Olímpia.
