When Joaquim Eugênio de Lima inaugurated Avenida Paulista, in December 1891, in allusion to the chosen name he declared: “It will then be Paulista in honor of the people of São Paulo”. This meant a visionary and deserved tribute to the people of the state, whose capital is the largest and most cosmopolitan city in the Southern Hemisphere. Interestingly, Joaquim Eugênio de Lima himself – then mayor of the city – was Uruguayan, an immigrant like many of his fellow citizens.
Over the past 131 years, many amazing projects – such as the creation of a boulevard with car circulation through a tunnel – have been developed for Paulista. Although they were not implemented, it has become the most modern of the capital’s avenues. Some concepts that seem new today, such as multipurpose complexes, have existed on Paulista since the 1950s.
From the beginning of the 80s, Paulista lived two ‘golden decades’, thanks to the migration of the financial sector from the center of the capital. This shifted power from the then powerful industry – symbolized by the imposing headquarters of FIESP – to the financial sector. In the eighties, along its 2800 meters, it was possible to observe the most diverse flags of national and foreign banks, a portrait of a very pulverized market. At the time, it had more than a hundred different banks.
At the end of the 1990s, with the concentration of the banking sector – and subsequent creation of fintechs, migration of many companies to Nova Faria Lima and new centers, such as the Shopping Morumbi region, and having poor janitorial and security as a contributing factor by the government, Avenida Paulista suffered a certain decay. In this way, it was surprising how, from the second decade of this century, Paulista resurfaced as a vibrant center of culture and coexistence, once again being the great reference of the capital of São Paulo.
It is difficult to be precise about the dates and movements of transformation of public spaces. However, certainly the new cultural facilities and the attraction of a young public were factors that contributed to this new moment on Paulista.
One must also consider the passion that Paulista awakens, as witnessed by Leonardo F. Netto, sales director of the multinational Harman, a technology company of the Samsung Group. Since childhood, he dreamed of working on Paulista, enchanted by the imposing skyscrapers. This wish was fulfilled already in adult life. And he says: “A beautiful, large, respectful avenue, where you can find everything, from theater to hospital, from bakery to international restaurant. From Avenida Paulista, I can go in any direction in the city, and the city arrives at Avenida Paulista, the main artery of our São Paulo”.
From the point of view of occupation – end users – it is curious to note that currently the domain still belongs to the financial sector – public and private – followed by operators of law – courts and law firms, as seen in the following graph:
When we analyse, from the point of view of the owners/lessors, the predominance is of real estate management/investment funds; secondly – but at a great distance – from the public, state and federal sectors.
Considering the ‘stock’ of properties in the Paulista region, we observe a large number of older developments whose slabs are relatively small. However, more recently, the trend that emerged was for developments – new or retrofits – with larger slabs, as was done at the former headquarters of Banco Real/ABN Amro, currently the Brazilian Financial Center.
Since current demands are focused on “triple A” developments, as stated by Patricia Beznos, director of Real Estate at Brookfield Properties – which has consolidated investments and those under development in the region: “The corporate real estate market in the Paulista region is extremely consolidated and has its own profile of occupants. We have seen a significant growth in demand in this region with a focus on “Triple A” buildings, state-of-the-art technical specifications, as well as easy access to transportation, food and services. These are characteristics that the Paulista region brings together, thus providing an excellent experience for the occupant”, she observes.
Avenida Paulista continues to be the main landmark in the city of São Paulo and, from the late 1990s onwards, the cultural facilities have given a new dynamic to the region, attracting a younger audience. In addition to having a large presence of tourists. This happened between the inauguration of MASP in 1947 – still considered the greatest expression of Paulista – and the Japan House. These spaces attract millions of visitors to the region each year.
The region offers its office occupants/end users the most complete set of infrastructure and amenities in the city of São Paulo. In addition, it has a complete transport system, such as subway, bus and car. It has a wide banking and hotel network, a range of services such as restaurants, malls, stores, hospitals, etc., as attested by lawyer Antonio Amendola, partner at Dias Carneiro Advogados, located there: “Eclectic and up-to-date, Avenida Paulista continues to be the headquarters of numerous companies. The many access options, public transport and food make this São Paulo postcard a great address to set up the office. Culture and good restaurant options add a special touch”.
Another very striking characteristic of Paulista appears in the prices of the products and services offered. For example, it is possible to arrive from Mogi das Cruzes or Jundiaí, with the cost of a ticket of R$ 4.40 – in the integrated public transport system; it is also possible to use the helicopter transport service. And by paying just R$1.00, you can heat up a packed lunch or spend a few hundred reais in sophisticated restaurants. Possibly for these reasons, Paulista represents the city of São Paulo so well, located between the refined neighborhood of Jardins and the popular Bela Vista/Bexiga.
Currently, the region’s vacancy rate is around 22%. This offers the end user good trading conditions for new leases. Within this stock there is a wide spectrum of options, from larger slabs in high-quality developments to smaller sets in older buildings. Many of them are still in good occupancy conditions, in addition, of course, to the developments that have been modernized with renovations and retrofits.
Thus, the Avenida Paulista region has been an excellent option for occupants/end users who demand a complete infrastructure in great developments at attractive prices. Especially for companies whose employees are in career development, university or specialization courses, since from Paulista there is easy access to the best universities and complementary courses.
For all these reasons, the region cannot go unnoticed. And in this sense, Ocupantes is ready to advise several companies on their occupation plan, proposing more efficient solutions, with financial and qualitative gains.
Haroldo Lopes | Partner
He is a Partner – Corporate Real Estate Director at Ocupantes and has been working in the real estate market since 1996. He specializes in corporate representation services, acting as project leader for Ocupantes’ large clients. He has already worked at the French multinational bank, Société Générale, in the foreign currency lending department and, later, in the planning area of Eurofarma.
Graduated in Business Administration from Mackenzie University.
Phone: +55 11 99953-4639
E-mail: haroldo.lopes@ocupantes.com.br
