The return on dividends on office real estate funds is the lowest since 2019

To tech companies or online retailing, remote work has been a business ally in modern times pandemic, to the office market, the story has been different, with an increase in the real estate returns and reduction in the values of rents.

As a consequence, the distribution of dividends to shareholders of real estate funds from corporate slabs is under pressure.

According to data from SiiLA Brasil, in the third quarter of this year, due to the impacts of the coronavirus pandemic, the net absorption (occupations fewer returns) of the corporate market A + and A in São Paulo was negative in 30.2 thousand square meters - the first negative result since 2008.

And the critical numbers don't stop there. The vacancy rate of buildings in the capital, went from 15.33% in the second quarter, to 18.33% from July to September. In early 2020, the rate was at 14.8%.

With the returns still witnessed in the market, the evaluation of Giancarlo Nicastro, CEO of SiiLA, is of a tendency to increase vacancy from now on.

In addition to the return of spaces due to remote work and the impact of the crisis on the financial health of companies, Nicastro points out that launches of buildings tend to increase the vacancy rate.

According to SiiLA, 2020 should end with an offer in the order of 83.3 thousand square meters of high-end corporate slabs, with the first "new stock" since the second quarter of 2019.

The data, however, do not suggest a "catastrophe", he points out since the slab market is in the "adequate" cycle, that is, there is not an excess of deliveries as happened in 2015 and 2016 when over 350 thousand square meters during that crisis.

In addition, when each region is analysed individually, there are meagre vacancy rates, says the case of Avenida Juscelino Kubitschek (in São Paulo), whose unemployment rate is at 3%.

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