High-end office vacancy in São Paulo is the lowest in the last four years | Q3 2024

After six consecutive quarters of positive net, Q3 2024 recorded the highest value since 2018, exceeding 100,000 sqm. Furthermore, comparing this quarter's net income to the same period in 2019, the last year before the pandemic, the results are four times higher, indicating a warming of the high-end real estate market. It is worth noting that one of the variables responsible for the positive result was the delivery of new inventory that had already been leased. Of the 83,000 sqm delivered in the quarter, 30,000 sqm have already been absorbed, a trend that has become increasingly common in recent quarters.

Another indicator that showed a positive variation was the average asking price. After an increase of more than 5 Reais in the previous quarter, it reached BRL 103/sqm in Q3 2024, the highest value recorded in the last 10 years. This increase can be explained by price fluctuations, mainly in 2 regions – JK and Nova Faria Lima. In the first region, there has been an influx of new inventory with prices above the city average, which has pushed up SP's asking price. In the case of the other region mentioned, with less than 30,000 square meters of vacant space, not only has there been a return of space and, consequently, the entry into the market of buildings with high prices, but also the increase in asking prices in buildings with prices already well above the city average, possibly as a result of demand in the face of low vacancy rates.