In late 2019, the economic outlook was one of moderate optimism. While disappointing, the GDP did increase between 2017 and 2019 and unemployment gradually let up, ending 2019 at 11%, the lowest it had been in four years. When COVID-19 hit the country, Brazil was forced to implement social isolation rules to contain the virus, which worsened the economic situation. After a challenge year, in December, expectations were not as bleak, and a 4.4% reduction on GDP was expected for the year. Uncertainly for 2021 is still higher than normal and the Central Bank expects the GDP to grow 3.8%. Many companies ended up anticipating a strategy of optimizing their offices, which could be the beginning of a phase of changing in office space occupations.
Unlike the third quarter, which was the best in 2020 for the Rio de Janeiro market, we saw a significant number of offices being returned on the fourth quarter, resulting in a negative 20 thousand sq.m net absorption, driving the vacancy rate from 35% to 36.2%.Download Rio de Janeiro Office Market Report Q4 2020