Office devolutions surpassed new leases in 2020

The São Paulo market for rental of business buildings ended 2020 with an increase in vacant spaces, resulting from many areas returned by tenants and new locations postponed throughout the pandemic. The unemployment rate rose from 14.6% in 2019 to 18.2% in 2020, considering A and B class rental availability in São Paulo, according to SiiLA. Last year, devolution surpassed new locations by 119 thousand square meters, leading to an increase in vacancy.

At the beginning of the quarantine, many landlords granted rental discounts for 90 days, which caused tenants to postpone decisions to maintain headquarters or make changes to the second half. But the crisis continued, and many companies ended up closing or extending the remote work scheme, which motivated them to give up areas, states the president of SiiLA, Giancarlo Nicastro.

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