As a co-sponsor, Ocupantes was pleased to once again participate in one of the most important events in the corporate real estate market: the 11th edition of Buildings Exclusive.
The gathering took place on June 1st (Thursday) at Edifício O Parque – Torre Orvalho, in São Paulo, the new office tower by Brookfield Properties.
As a client of the Buildings CRE Tool, Ocupantes considers the event to have been very fruitful, as it brought together over 300 real estate executives for an exchange of ideas and experiences that does not happen often.
Fernando Didziakas, Managing Partner of Buildings, led the presentation of office market data, logistics sector, shopping malls, Santiago data, and the expansion of their logistics and industrial research, among other platform updates.
The event also marked the launch of the new Cap Rate panel within the CRE Tool, a new functionality that allows clients to access the capitalization rate of a potential transaction in a specific property.
Although the numbers for Q1 2023 are already known, as well as the historical data from previous quarters, and the challenges and opportunities the market has faced in recent years, the comparative analysis of the results provided new insights and perspectives to the sector, reflecting the current moment.
The logistics sector in Brazil continues to show good results
Didziakas began his presentation by providing an overview of the logistics sector in Brazil. Currently, the logistics market consists of 924 logistics condominiums, totaling 32.4 million square meters already delivered. Additionally, there are 4.3 million square meters under construction and 20.4 million square meters in the planning phase.
One of the highlights of the analysis focused on the 30 km radius around the city of São Paulo, which is highly competitive for e-commerce companies due to its proximity to the capital.
In total, there are 166 logistics condominiums, representing 6.5 million square meters already delivered. The vacancy rate stands at 8.0%, which is considered low.
Regarding the profile, 73 of these condominiums belong to Class A and A+, accounting for 4.5 million square meters delivered. This specific radius has a vacancy rate of 9.4%.
Out of these 73 condominiums, 26 properties, which represents 35%, have vacancies.
A question raised by Didziakas was about the length of vacancy periods in these condominiums. According to him, 70% of the vacancies within the 30 km radius are for up to one year.
Looking at the 8 condominiums that have been vacant for more than one year within the 30 km radius, we observe that in Q1 2021, the vacancy rate was 22%, which decreased to 11% in Q1 2023.
On the other hand, the average asking price has increased. It was R$ 21.00 in Q1 2021 and now, in Q1 2023, it stands at R$ 26.00.
Therefore, despite the decrease in vacancy, prices have risen. This demonstrates that investors and logistics players continue to value their properties and make them even more competitive.
The office market in São Paulo
The data for Q1 2023 in the city of São Paulo indicates a total of 11.8 million square meters of Corporate buildings across 1,614 completed buildings. Additionally, there are 49 buildings under construction or undergoing retrofitting, and 23 in the planning phase.
When looking at the vacancy rate for Class A and A+ Corporate buildings, it reached 22.2% in Q1 2023. Net absorption was a significant highlight of the quarter, with a negative absorption of over 8,000 square meters, marking the first negative absorption in six consecutive quarters.
Major companies returned part of their spaces, as previously anticipated. Among them are technology, banking, and e-commerce sectors.
- Meta, which returned 14,800 square meters in Infinity Tower and Birmann 32;
- Itaú, which returned 11,800 square meters in CEAB;
- Caixa Econômica, which returned 7,200 square meters in São Luiz Gonzaga;
- Shopee, which returned 4,200 square meters in Birmann 32.
Regarding the forecast for new deliveries, the market is expected to receive approximately 161,000 square meters in the first half of 2023, meaning we are in the final stretch.
There is a projection of 79,000 square meters for the second half of 2023, over 76,000 square meters for the first half of 2024, and more than 157,000 square meters for 2025.
The event also fostered the discussion and analysis of office rental prices in the post-pandemic era. The Faria Lima region, the most important and coveted area in São Paulo, had the highest rental value, with a minimum of R$ 190.00 per square meter and a maximum of R$ 320.00 per square meter.
In terms of “transactional values for rental and sale,” the minimum recorded sale price was R$ 27,000 per square meter, and the maximum was R$ 44,000 per square meter. The average presented was R$ 38,000 per square meter, with a Cap Rate of 6.5%.
Other established regions were also evaluated in terms of rental and transaction prices, including Itaim/Vila Olímpia, Pinheiros/Berrini/Jardins, and Paulista/Chucri Zaidan.
Like in previous editions, this edition of Buildings Exclusive marked an important moment for the sector, with reliable and consistent data and analysis.
