Sao Paulo Office Market Report

The Brazilian GDP increased 1.9% in the first quarter, following a slight drop in the last quarter of the year. This growth was higher than expected, but economic activity is expected to further slow down in 2023. The higher GDP was primarily a reflection of agriculture and livestock, which increased 21.6% following a record soy harvest. Other sectors remained relatively stable, while manufacturing industry and construction dropped once again.

Although tenants continue to reduce occupied areas, this is happening at a slower pace and net absorption is positive once again. Vacancy rate remained practicable stable at 24.7%, even with a large volume of new inventory delivered.