High-end office vacancy rate in São Paulo has been reduced | 1Q2022
The corporate real estate market is experiencing heating up in demand and has positive net absorption in the first quarter.
The first quarter of 2022 saw a boom in the high-end office market in São Paulo. According to the First Look report, carried out by JLL, the vacancy rate in the city dropped by 0.7 p.p. and the net absorption was again positive.
Gross absorption also had an outstanding performance, reaching around 103 thousand m² in the period. For Yara Matsuyama, Director of Leasing at JLL's Office Division, the index points to the resumption of the movement of companies in search of spaces. “We see companies expanding or relocating to slabs that serve them more efficiently. Returns due to effective space reduction have dropped and are returning to the behavior we had before the pandemic”, he reports.
Confirming the trend that was already seen in previous quarters, Faria Lima presented a further reduction in the volume of vacant spaces. The region, which registered a vacancy rate of 8.1%, had more than 24 thousand m² of net absorption. This volume corresponds to several negotiations carried out by companies that, for the most part, are already located in Faria Lima, have shown growth and, therefore, are looking for spaces in the same area.