The most expensive commercial rent in the country.
Rio de Janeiro loses its leading position to São Paulo in average price for high-end rentals, which reaches an unprecedented level in the São Paulo market. Consulting firm highlights Recife's potential.
Luciane Macedo _247 - Commercial rental prices for Class A properties in the city of São Paulo closed the first quarter of 2012 with a 33,9% increase compared to the previous year. The average price per square meter for high-end commercial rentals reached R$ 123,7, a level never before seen in the São Paulo capital, according to market research by the consulting firm Cushman & Wakefield. This price also surpasses the average price in Rio de Janeiro, which, since 2009, had led the ranking of the most expensive location in the country for high-end offices.
Among the Brazilian cities surveyed by Cushman & Wakefield, most registered rising prices for this type of rental, with the largest variations observed in Curitiba (39,9%), Brasília (33%), and Vitória (19,1%). The outlook, according to the "MarketBeat de Escritórios" survey, is for a promising 2012, with a forecast of doubling the volume of new stock delivered last year, and Recife standing out as one of the great potential areas to be explored in the Class A commercial rental market.
In São Paulo, the average vacancy rate closed at 11,7%, up 4,8 percentage points compared to the first three months of 2011. "The temporary increase is due to new inventory delivered mainly in the first three months of the year," the consulting firm assesses.
The most valued areas are Faria Lima, with an average price per square meter of R$ 176,5, Itaim (R$ 165,8) and Vila Olímpia (R$ 133,2). "The combination of a booming market (vacancy in Faria Lima registered less than 1%), high quality and modernity of the new buildings recently delivered has once again been reflected in the variation of the average rental price, making these areas also those with the highest quarterly growth," notes Cushman & Wakefield.
In Rio de Janeiro, the average asking price for commercial rentals in Class A properties was R$ 120,7 – 7,7% lower compared to the first quarter of 2011. The vacancy rate was 6,3%, a decrease of 0,3 percentage points.
The capital of Rio de Janeiro, however, still has the highest average price per most valued region: R$ 203,3 per square meter in the South Zone. Following that, the most expensive regions are Orla (R$ 181,4), also higher than the two most prestigious regions in São Paulo, and Centro (R$ 126,7).
The average price across all Brazilian cities surveyed (Rio de Janeiro, São Paulo, Brasília, Recife, Salvador, Porto Alegre, Vitória, and Curitiba) closed at R$ 76,8 in the first quarter of 2012, 9,6% higher than that recorded in the same period last year. The average vacancy rate recorded was 10,3%.
According to Cushman & Wakefield, Recife stands out for Porto Digital, one of the most important technology parks in the country, and the Suape Industrial Port Complex, which is strategic for industrial activity, regional distribution, and exports.
"Compared to the country's main cities, the office market in Recife is still small, but the growing demand and low supply of quality mean that the average price of high-end buildings surpasses that of other cities in Brazil, falling behind only São Paulo, Rio de Janeiro, and Brasília," notes the consultancy, pointing out that the average price in the Pernambuco capital is R$ 62,9 per square meter. "High-end developments planned for the next five years could considerably increase the existing stock of Class A buildings, which should reflect in greater appreciation and attractiveness of the real estate market."