In 2020, experts predicted a downturn for office spaces. Yet, in Brazil, the tech and finance sectors quickly adapted to remote work.
A notable case was XP Inc., leaving its São Paulo offices for a rural project. Despite this, CBRE, a top real estate firm, argued against the decline of São Paulo’s Faria Lima district.
They highlighted low vacancy rates and ongoing premium projects.
Now, São Paulo’s office market is flourishing again. It is moving beyond its traditional centers. Even XP Inc. has returned to its former office tower.
This revival isn’t just in São Paulo, but also in cities like Rio de Janeiro and Curitiba.
CBRE’s studies show a strong return to office settings. Over 80% of São Paulo’s major buildings saw high occupancy late last year.
This reflects about three and a half days of office work per week.
The last quarter’s data showed a significant rise in office use, doubling the net absorption rate from the previous year.
Even as new offices were introduced, the vacancy rate dropped slightly.
Looking ahead, lower interest rates and stable inflation predict more growth. Businesses are ready to invest, leading to more office leases and expansions.
Giuliano from CBRE expects big companies to drive this growth. They are slowly returning to office life, especially as the market recovers.
This shift is seen in increased city traffic and a stronger demand for in-office days.
As a result, businesses are seeking new office locations. Space is limited in high-demand areas like Faria Lima, leading some companies to occupy multiple sites.
Emerging Office Locations
Giuliano points to new areas for office development, like the Marginal Pinheiros area.
This region recently had one of its best years in terms of office space absorption, mainly driven by competitive pricing.
The hunt for premium office spaces is also shaping this trend. However, as vacancies decrease, prices might rise.
In recent months, a significant portion of large office leases occurred in this new hub.
The pandemic has also influenced office design, pushing Brazilian offices towards international density standards.
The office market is set to expand by about 330,000 square meters this year, surpassing the last decade’s average.
This growth will mainly be in medium- to large-sized buildings, reflecting a broader trend of office modernization and space optimization.