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Market Note Setember

Jadson Andrade • 10/27/2020
After two months of consecutive drops in its vacancy rate, São Paulo´s CBD classes A and A+ registered an increase of 0.4 p.p., reaching 19.5% at the end of the month. Rio de Janeiro’s CBD classes A and A+ office market continued to present positive results, with a net absorption of 3,427 sq.m, totalizing 10,590 sq.m until October.
Office São Paulo

After two months of consecutive drops in its vacancy rate, São Paulo´s CBD classes A and A+ registered an increase of 0.4 p.p., reaching 19.5% at the end of the month. The net absorption also had a weaker result compared to previous months and closed at 1 thousand sq.m. The highest variations occurred in Marginal Pinheiros and Santo Amaro regions. Marginal Pinheiros’ region had an expressive – but already planned – departure, leading to a vacancy rate of 33.9% (+ 6.5 p.p.) and a negative net absorption of 14.6 thousand sq.m. On the other hand, Santo Amaro´s region presented a drop of 6.1 p.p. in the vacancy rate, reaching 58% due to a positive net absorption of 7 thousand sq.m in a single building, by a technology company.

The average asking rent followed last months’ trend of increase and reached BRL 102.42 (+ BRL 0.85), the highest value since 2016. This was mainly due to some increases in rental prices and
departures in high asking rents buildings, as was Marginal Pinheiros’ case, which registered an increase of BRL 10.48 and closed the month at BRL 69.06. Additionally, a new completion has been delivered in Berrini´s region, after long time in retrofit - already occupied by a single company – totalizing 16.5 thousand sq.m. of new inventory in October.


Office Rio de Janeiro

Rio de Janeiro’s CBD classes A and A+ office market continued to present positive results, with a net absorption of 3,427 sq.m, totalizing 10,590 sq.m until October. This absorption was mainly due to a large occupation in Centro region by a public administration company.
The vacancy rate had its lowest value of the year, reaching at 33.17% - with a drop of 0.22 p.p. (MoM) and 1.78 p.p. (YoY). In addition, the city received approximately 5 thousand sq.m in leases in Centro and Zona Sul regions, which should be occupied in the short term and may contribute to the reduction of the vacancy rate afterwards.

The average asking rent continued in a downward trend and remained almost stable, reaching at BRL 92.65 per sq.m/month. However, this effect can be explained by the occupancies registered in the current period, which were mostly in corporate buildings with higher asking rents. Besides that, there was a reduction of the asking rent at Centro region.



Industrial Rio de Janeiro

After three months without new completions, Rio de Janeiro’s classes A and A+ logistic market delivered 10.4 thousand sq.m this month, that area were concentrated in the major market of Santa Cruz/Campo Grande, totalizing 152.6 thousand sq.m in 2020. In October, the state registered the second highest absorption this year with 59.8 thousand sq.m, where Duque de Caxias was responsible for 80% of that absorption with 48.3 thousand sq.m.

The combination of lower completions and high absorption held Rio to decrease its vacancy rate and achieve the lowest value in 5 years once again, closing October at 17.55% - a drop of 2.4 p.p. (MoM). The asking price declined after a few months of growth, due to the occupations in the prime logistics parks with higher asking price. Hence, Rio closed the period at BRL 20.73 per sq.m/month a drop of 0.6% (MoM).



Industrial São Paulo

São Paulo’s classes A and A+ logistic market reported in October the best results in the year for absorptions. The net absorption registered the highest one since 2015, with 175.8 thousand sq.m, highlight for 43% of it in Sorocaba’s major market - a total of 76 thousand sq.m. The state also received new completions for the third consecutive month, delivering a total of 45 thousand sq.m that was fully concentrated in the major market of Sorocaba.

Consequently, the vacancy rate dropped 1.5 p.p. (MoM) as a result of the high net absorption, achieving 15.59%, the lowest value since Q42012 (14.88%). Almost half of the São Paulo’s regions, 7 out of 13, have a vacancy rate lower than 15%. Additionally, as a result of the decrease in the vacancy rate, asking price increased 1% (MoM), closing October at BRL 18.69 per sq.m/month.

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