Corporate Offices Market Rebounds in Rio de Janeiro

RIO DE JANEIRO, BRAZIL – Last Thursday, February 13th, the ‘Webinar SiiLA: Escritório’ was held. Giancarlo Nicastro, CEO of SiiLA Brasil discussed with Claudio Hermolin, president of Brasil Brokers, the performance of the corporate office market in Rio de Janeiro.

According to the executives, commercial real estate in Rio de Janeiro is on a rebound. The vacant space rate in high-standard offices (A+ and A) in the city, which reached 44 percent in the first half of 2017, is now at 32 percent, according to the most recent data from the SiiLA platform.

The Port region has had vacancy rates above 90 percent. Today, the rate is in line with the market – 34 percent at the end of 2019, and this rate tends to drop over the next few periods.

“The real estate market is all about location. And there is no place in the world with a location feature like Porto Maravilha. Here we have the ferry station, Santos Dumont Airport, VLT, bus terminals, including inter-municipal lines, the Rio-Niterói Bridge, easy access to the Red and Yellow highways and along Brasil Avenue. So anyone with vision will certainly see Porto Maravilha enjoys a great future ahead,” says Hermolin.

Director of Sérgio Castro Real Estate, Anderson Martins commented on the expectations for 2020 in the business.

“The real estate segment is still feeling the effects of the economic crisis that we are experiencing in Rio de Janeiro. I still consider it too early to confirm a rise in prices. We believe that throughout 2020, the outlook will be for the sale of properties with an adjusted price or below market value. The Brazilian economic outlook suggests that the 2020 season will represent an opportunity for buyers and favorable negotiations”, explained Anderson.

He also used the opportunity to finish by emphasizing Sérgio Castro Real Estate’s perspective for the year.

“Sérgio Castro has already begun 2020 with many investments, strong and expressive sales volume of commercial and residential properties. Everything is in place to achieve another year of success,” said the director.

Giancarlo Nicastro, CEO of SiiLA Brasil, expressed his opinion on the matter:

“Since 2014, the Port has hosted seven new high-standard developments, all with modern architecture, which have come to revamp this area in Rio de Janeiro. In common, they all offer their tenants the most technological and efficient features. Of the seven developments inaugurated during the period, five are now certified as sustainable, one of the new trends that have come to stay,” said Nicastro.