Commercial rents in Brazil saw the highest increase in a decade in 2024 – with companies returning to in-person operations, the real estate sector is gradually recovering from the pandemic years. While this is good news on one hand, corporate tenants now have to deal with an 8% rent increase, which exceeds last year’s official inflation rate of 4.83%, according to data from the FipeZAP index, which monitors the cost of commercial spaces up to 200m² in 11 major cities.
The sudden demand for larger or better-located commercial spaces has driven up property prices, creating a rising cycle that isn’t likely to stabilize soon. Additionally, the search for properties that meet new safety and employee well-being requirements—such as wider circulation areas, improved ventilation systems, and accessibility features—has contributed to a shortage of available spaces and, consequently, higher prices.
The issue is that in the years following the pandemic, many companies drastically reduced their physical office space. Returning to in-person operations means businesses will need to reallocate workers without significantly expanding their premises, as renegotiating rental prices now could lead to substantial increases. The way out of this dilemma lies in optimizing existing space, which could range from reconfiguring internal layouts to relocating physical documents.
Solutions for the lack of space
According to AIIM—the Association for Information and Image Management, between 10% and 30% of an office’s space may be occupied by physical document storage.
In this context, we’ve seen many companies turn to outsourced document storage as an alternative. Historically, businesses maintained large physical archives in their offices—and although some of these records were digitized or outsourced after the pandemic, many organizations still retain physical files. Demand for these services remains high.
Specialized document management companies offer robust services in digitization, storage, and document management, ensuring security, accessibility, and compliance with local and international regulations. Beyond freeing up office space, outsourced document storage provides additional benefits such as reduced costs for archive maintenance, improved efficiency in accessing and sharing information, and mitigation of risks related to loss or damage of physical documents.
Indeed, digital transformation has been one of the greatest allies in space optimization and operational cost reduction. With increasingly advanced technologies, document digitization not only facilitates access and information sharing but also enhances data security, minimizing the risk of losses due to natural disasters, fires, or theft. Implementing electronic document management systems (EDMS) allows companies to centralize their information on secure, remotely accessible platforms, promoting a more agile and collaborative work environment.
These figures are particularly relevant when considering the financial impact of rising rents. By freeing up space previously dedicated to physical files, companies can reduce the need for larger areas, opting for more compact and cost-effective offices.
Benefits of outsourcing
Beyond direct financial benefits, outsourced document storage improves internal processes. Storage services may also include digitization, keeping all documents organized and accessible via cloud systems with necessary security measures.
Another key consideration is regulatory compliance. Many companies struggle to comply with data storage and protection regulations, especially with the enactment of Brazil’s General Data Protection Law (LGPD). A qualified provider ensures all legal requirements are met, reducing the risk of penalties and reputational damage. Outsourced document storage offers better cost-benefit ratios and more operational advantages than expanding physical space.
In summary, outsourced document storage combined with digitization represents a strategic solution for companies seeking to optimize space, reduce costs, and enhance operational efficiency. Beyond fostering a more organized and collaborative work environment, these practices significantly contribute to regulatory compliance and information security, preparing organizations for the challenges of an increasingly competitive and digital market.
