In a more challenging environment for the office segment due to the social distancing caused by the covid-19 pandemic, the private equity manager GTIS Partners managed to keep its tenants in São Paulo and signed a new lease this week in Rio de Janeiro. In São Paulo, the manager signed two contracts for specific expansions during the pandemic, and there is no vacancy in its corporate buildings. With the rent of 12,000 square metres (nine floors) to Idomed, which is part of the Yduqs group (formerly Estacio), occupancy reaches 61% in the Rio market.
"If it weren't for the pandemic and the market conditions in Rio, we would expect values a little above those we closed," says the executive director of GTIS Brasil, Maristella Diniz. Starting in the first half of 2022, the Idomed medical school will occupy half of one of the triple-standard project A Vista Guanabara towers on Avenida Presidente Vargas. "We have seen other relevant contracts also being closed in Rio. With the vaccination, the process tends to advance", according to the executive.
In the Rio de Janeiro market, the sectors that lead the occupation of GTIS offices are health, financial services and education. The oil and gas sector accounts for only 3% of the total. "The energy and oil market has resumed. There will be taking up space by tenants from these sectors as of 2022", says the director. Recently, a tenant informed the manager that he would return to the area in the capital of Rio de Janeiro, as he will consolidate his operations in another undertaking.
GTIS has 110 thousand m2 of offices in Rio and 71 thousand m2 in São Paulo. Without informing which indicators had been applied in the contracts revisions, the executive says that the manager has been making the "necessary and reasonable negotiations" to keep the tenants and understand the reality of each one. "The concessions were not of values", she emphasizes. In São Paulo, almost 60% of tenants are from the financial and technology sectors, less affected by the crisis. Law firms also account for a relevant share.