Supply Drought Drives São Paulo Office Occupancy to Post-Pandemic High

According to recent data from real estate consultancy CBRE, São Paulo’s commercial office market is experiencing a significant recovery. The city saw only 23,700 square meters of new office space delivered between January and April 2025.

This figure represents less than half the 48,300 square meters delivered during the same period last year. The limited new supply has directly contributed to falling vacancy rates across the market.

Overall vacancy dropped from 20.3% in April 2024 to 18% in April 2025. High-end office spaces showed even more dramatic improvement, with vacancy rates plummeting from 17.3% to just 12.6% during the same period.

Developers appear to be strategically holding back new inventory. EZTec exemplifies this approach with its Esther Towers project in São Paulo’s southern zone.

The development features two towers with 94,000 square meters of leasable area—nearly four times the total new stock delivered citywide this year.

The project stands at 67% completion but EZTec deliberately slows construction while waiting for major tenant commitments. Company Vice President Marcelo Ernesto Zarzur reports growing interest from potential tenants, though offered rental rates remain below initial projections.

Net absorption figures further confirm the market’s positive trajectory. The city absorbed 107,400 square meters between January and April 2025, marking a 23% increase over the same period last year.

Premium AAA buildings performed particularly well, absorbing 36,000 square meters—21% more than in 2024. Meanwhile, Rio de Janeiro shows modest improvement in its office market.

The city’s vacancy rate decreased from 29% to 27.3% year-over-year. Unlike São Paulo, Rio’s premium buildings maintain vacancy rates similar to the broader market at 26.6%.

Rio’s net absorption grew dramatically from 2,800 square meters in early 2024 to 20,900 square meters in the same period this year. This sevenfold increase signals growing demand despite no new office deliveries in the city.

The market shift reflects evolving corporate priorities post-pandemic. Companies now view offices as strategic assets connecting culture and brand image rather than simply housing employees. Competition increasingly focuses on quality, technical features, and location rather than size alone.

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