With the second highest vacancy rate in history, Brasília records third consecutive quarter with negative net absorption

An exclusive analysis by SiiLA shows that in the first quarter of 2024, the region recorded negative 1,000 m²; in the fourth quarter of 2023, the capital hit a record negative

Ricardo Galvão, President of CNPq, a government institute that vacated the Santos Dumont complex.

By: SiiLA News

06/12/2024

Every capital has its peculiarities. São Paulo, for example, is established as the financial center of the country; Rio de Janeiro hosts various energy and oil and gas companies; Brasília, on the other hand, focuses on public agencies. However, this is not enough to sustain the real estate market of the national capital.

For the third consecutive quarter, Brasília recorded negative net absorption. In the first quarter of 2024, the region recorded negative 1,000 m²; in the fourth quarter of 2023, the capital recorded negative 12,000 m² – the lowest negative net absorption since 2018.

The overall balance for 2023 was negative 14,000 m². In 2022, this number was almost neutral, around 500 m² of positive absorption. Consequently, the vacancy rate is also high in the city, currently reaching 18.7% – the second worst result in its history, only behind the third quarter of 2019, when it reached 19.8%.

Net Absorption

The composition of occupants includes Finance as the largest occupant, Government and Administration in second place, and Institutes and Foundations in third. Essentially, by inverting the Top 3 largest occupants, we have the largest sectors that have returned space in recent quarters.

Institutes and Foundations returned 21,000 m² of office space, Government and Administration returned 17,000 m², the Real Estate sector returned 6,000 m², and the Finance sector handed back 3,000 m².

Currently, Brasília's market has a total stock of 740,000 m² of A+, A, and B class assets and has not received new developments since the third quarter of 2022, with the delivery of the SAI 6 Building, an A-class with 4,000 m², which has never been leased to date.

Who is leaving?

Tenant Vacancy

An exclusive survey conducted by SiiLA's intelligence team identified that the three largest returns in the last three quarters were from public agencies. The CNPq (National Council for Scientific and Technological Development) vacated 19,000 m² in the four blocks of the Santos Dumont complex in the third quarter of 2023.

The Ministry of Education ranked second, vacating 6,000 m² in the Phenícia building in the fourth quarter of 2023. ANAC (National Civil Aviation Agency) returned 5,000 m² in Tower A of the Parque Cidade Corporate.

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