Supply of new office space low again in Sao Paulo

While absorption is roughly stable at around 100000 square meters per year, new supply in 2006 was only about 75000 m2. In 2007, new supply should be close to absorption - but the projections for 2008 are below 50000m2.
(For your reference - in 2003, new supply totalled almost 180000m2!)

Demand is especially high for A-class property - which grew 64%; and prices are generally going up. Monthly rent for A-class (about 35% of SP's total office space) is around 52R$, with tops around R$92.