Upscale office occupancy rises in Rio driven by the public sector – 01/29/2023 – Panel SA

The high-end corporate real estate market in Rio de Janeiro registered an increase in the volume of negotiations in the final quarter of 2022, according to monitoring by JLL consultancy.

The vacancy rate, an indicator of the percentage of vacant square meters in relation to stock, ended the year at 36.7%, the lowest since 2018. For 2023, JLL expects the index to be even lower, at 34.5%, since the municipality does not have works of this type in progress. That is, the stock will not grow.

The main driver of the corporate real estate market in Rio comes from the public sector. Government agencies accounted for 49% of the total new business done in the fourth quarter of 2022, says JLL.

The consultancy highlights the 18,000 square meters leased by the City Council of Rio and another 1,500 square meters by CET (Companhia de Engenharia de Tráfego), both in the central region of the city.

In São Paulo, JLL highlights the diversity among the new rental deals closed in the fourth quarter of 2022. Uber’s return to São Paulo –the company had moved to Osasco– was one of the highlights among the negotiations.

The technology company leased 6,300 square meters at Faria Lima Plaza, one of the newest buildings in the financial district of São Paulo, in Largo da Batata. On the Berrini-Chucri Zaidan axis, Brookfield leased 2,800 square meters at WTorre Morumbi.

The capital of São Paulo closed the year with a vacancy rate of 22.6% in relation to the 33.7 thousand square meters of high-end corporate towers.

For 2023, the consultancy projects a slight reduction in the percentage of vacant square meters (22.4%), while the new stock should grow by 225 thousand square meters.

Joana Cunha with Fernanda Brigatti, Paulo Ricardo Martins and Diego Felix

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