Business · Economy · 3 hrs ago
São Paulo high-end office demand doubles historical annual average
Companies occupied more high-end office space in São Paulo than they gave back during the first nine months of the year, a measure known as net absorption.
The total reached 284,000 square metres, about twice the historical annual average of 139,000 square metres.
Pinheiros led demand in the third quarter, while some other popular areas had less space available to rent.
New buildings added 176,000 square metres of supply in the quarter, pushing the average vacancy rate up to 14.8%, even as demand absorbed much of the new space.
Average rents rose 15% over 12 months, and premium buildings cost more than the market average.
Limited new supply in the coming years could keep rents rising, especially in prime locations.
Net absorption is expected to remain strong in the fourth quarter, with a slight rise in vacancy; from 2027, vacancy is expected to fall as fewer new buildings come onto the market.
Net absorption of high-end office space in São Paulo reached 284,000 square metres in the first nine months of the year, twice the historical annual average.
The figure was reported in a survey by commercial property consultancy Newmark.
Pinheiros led the city’s regions in third-quarter net absorption, with 49,000 square metres.
São Paulo’s average vacancy rate rose to 14.8% in the third quarter as new buildings entered the market.
Average rents reached R$131.3 per square metre per month, up 15% over 12 months.
- Who
- Companies seeking high-end office space in São Paulo.
- What
- Net absorption reached 284,000 square metres in nine months, twice the historical annual average.
- When
- In the first nine months of the year; the reported quarterly figures cover July to September.
- Where
- São Paulo, Brazil.
- Why
- Newmark said net absorption reflects changes in occupied space, accounting for both new occupancy and property returns.
This story does not have two clearly opposing sides.
Companies planning to expand or move in the next two years should bring forward their decision. In areas such as Pinheiros, JK, Itaim and Paulista, vacant space is increasingly scarce and no significant new supply is expected.
São Paulo’s average vacancy rate rose by 0.5 percentage points to 14.8%, while 176,000 square metres of new office space was delivered.
Net absorption of high-end office space totalled 284,000 square metres.
- Nine-month net absorption
- 284,000 m²
- Historical annual average
- 139,000 m²
- Pinheiros third-quarter absorption
- 49,000 m²
- Third-quarter new supply
- 176,000 m²
- Average vacancy rate
- 14.8% after a 0.5 percentage-point quarterly rise
- Average rent
- R$131.3 per m² per month
Sources
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