In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in São Paulo have fallen by 18.3% over the last year. The prime yield is 9.8%, or a 4.98% premium to the yield on 10-year government bonds. Over the last year, rents have fallen by 6.3% and net absorption (on a rolling one year basis) has been 3.4%. The vacancy rate is currently 23.4%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 18.6% of current stock. JLL considers that conditions will likely favour tenants in 2016.

Source : November 2015/JLL/São Paulo/OFF