São Paulo Industrial Market
The industrial and logistics condominium market in the state of São Paulo concluded 2025 with exceptionally high activity levels and record-breaking demand. Leasing activity remained robust, with gross absorption reaching 572,000 sq m and net absorption hitting a new record of 489,000 sq m. This strong performance was met by significant levels of new supply, reflecting the dynamic growth patterns observed in recent years.
Market pressure from high demand continues to drive financial shifts, as asking rental rates trended upward with a notable 7% increase during the fourth quarter. Looking ahead to 2026, approximately 1.5 million sq m of new developments are expected to be delivered. Because this volume is close to recent absorption levels, the market is projected to remain at a low risk of oversupply, maintaining its current momentum.
Download São Paulo Industrial Report Q4 Q4 2025Sao Paulo Office Market
- São Paulo’s high-grade corporate office market experienced its second-best quarter of the year in 4Q25, characterized by gaining momentum in leasing activity. Gross absorption for the quarter reached 160,000 sq m, while net absorption totaled 107,000 sq m. This surge in demand led to a significant decline in the vacancy rate, which dropped from 17.3% to 15.9%—the lowest level recorded since 2012.
The supply side saw fewer deliveries than initially projected for 2025, which, coupled with strong demand, has continued to push asking rental rates upward. The outlook for 2026 remains positive, with projections pointing toward consistent absorption levels, controlled vacancy, and sustained rental prices. This stabilization suggests a healthy environment for high-end corporate spaces as the market continues its recovery