Paulo office market has a strong start to the year | Q1 2026

The prime office market in São Paulo began 2026 with yet another drop in the vacancy rate. The index reached 13.4%, the lowest level recorded in the past 14 years. According to a JLL study, this performance reflects consistent absorption of available space, with the average asking price increasing by 8% in one year and 24.3% over a 24-month period.

Activity at the start of the year was driven by large-scale transactions, totaling 12 leases over 3,000 sqm and six above 5,000 sqm. Geographically, the submarkets of Barra Funda, JK, and Chucri Zaidan led occupancy growth, each registering net absorption above 15,000 sqm. The Rebouças corridor stood out as one of the main highlights by reaching full occupancy during the period.

“The performance of Rebouças demonstrates the maturity of this submarket in the corporate segment. In fact, the new supply expected to be delivered this year is already fully pre-leased,” says Yara Matsuyama, Director of Leasing at JLL.

The executive points out that the market has grown 26% in inventory volume since 2019. “Despite that, those looking for large spaces are already finding it difficult in the main corporate hubs,” she notes.

JLL’s study identifies a reduction in the number of buildings able to offer contiguous floors above 10,000 sqm: from 17 down to 7 compared to the first quarter of 2024. In the current scenario, traditional submarkets such as Faria Lima, Itaim, Nova Faria Lima, Paulista, and Vila Olímpia no longer have areas of this size available in their inventories.

David Aguiar, Research and Strategy Analyst at JLL and responsible for the study, highlights the impact of this situation on corporate strategies: “The reduction in options for larger spaces in the central corridors is shifting demand towards submarkets that still have this availability or to projects under development,” he explains. “This also increases the need for long-term planning,” adds Matsuyama.

JLL projects that vacancy rates will continue to fall, reaching around 11%. “Even with new supply expected above 300,000 sqm, we believe the volume of absorption will surpass that of 2025, setting a new record for the market,” says Aguiar.