Nascent recovery in Sao Paulo's real estate market as vacancies drop

Sao Paulo

LOPES Supermercados, a small supermarket chain on the outskirts of Sao Paulo, has started opening stores again after enduring three years of economic malaise. Meanwhile, co-working startup WeWork Co opened its first office in the heart of Brazil's financial capital three weeks ago, with five more planned through January.

Vacancy rates for prime-quality commercial real estate in Sao Paulo started dropping in September for the first time in five years, a decline that has continued through May as growing companies gobble up space and long-time Brazil investors indicate it's time to buy. The activity is a welcome sign in a market pining for good news.