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Brookfield Raises Office Occupancy to 91%

Despite all the uncertainties brought by social isolation in comparison to the future of commercial offices, Brookfield Asset Management - the owner of one of the main income asset portfolios in the market - raised its occupancy rate in the segment concerning the pre-pandemic level of covid-19 from 86% to 91%. Most of the corporate buildings are located in São Paulo. The vacancy of the company's buildings is concentrated in Rio de Janeiro.

Since the beginning of the pandemic, Brookfield has registered 38,000 square metres of new leases and 15,000 square metres of land relinquishment. "Without a doubt, there is a new dynamic in the market that we are still understanding, but no returns were due to the 'home office'. Some companies have reduced their leased space due to the crisis, and others have moved to more affordable buildings," Roberto Perroni, leader of Brookfield Asset Management's real estate business in Brazil, told Valor.

At least three customers informed, according to him, that they are considering adopting the hybrid work system and are considering expanding occupied areas due to the need for more distance between people. "To spread the company's culture, the work has to be in person, especially for newcomers," he said. Areas were devolved and contracted by tenants from the industry and services. Financial sector customers kept the leased spaces. It has not been necessary, according to Perroni, for the company to be aggressive in prices.

Brookfield's portfolio of ready income properties under management corresponded to R$10 billion at the end of March. Considering only the own part, the total area of finished corporate buildings amounts to 290,783 m2 and, underdevelopment, 373,071 square metres. Except for one building in Rio, all projects in operation have a triple-A standard. A year and a half ago, the company started to prioritise developing projects in comparison to the acquisition of completed buildings.

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