Brazil has low industrial properties stock per capita, while construction costs limit new supply
- Vacancy at 3.09%, high pre-leasing and low stock per capita show that the supply of industrial properties remains insufficient in Brazil
Even after more than tripling its stock in just over a decade, Brazil still faces a shortage of industrial properties. Data from SiiLA’s Market Analytics show that, in the third quarter of 2026, the country had 31.18 million sqm of monitored stock, equivalent to just 0.146 sqm per capita, while the vacancy rate stood at 3.09%.
At 0.146 sqm per capita, Brazil has a relatively low density of industrial properties. Even São Paulo, which concentrates 52.8% of the country’s monitored stock, reaches only 0.356 sqm per capita. Espírito Santo stands at 0.193 sqm, Pernambuco at 0.187 sqm, Rio de Janeiro at 0.175 sqm and Minas Gerais at 0.164 sqm.
Stock is also concentrated in higher-grade properties. Class A+ and A assets represent 80.5% of all monitored space in the country, with 14.22 million sqm and 10.88 million sqm, respectively. Class B assets account for another 5.65 million sqm.
International benchmarks help put Brazil’s figure into perspective. Mexico records 0.816 sqm of monitored stock per capita, Portugal 0.471 sqm, Poland 1.004 sqm, the Netherlands 2.786 sqm and the United States 4.882 sqm.
Growth
Between the fourth quarter of 2015 and the third quarter of 2026, monitored stock increased from 9.29 million to 31.18 million sqm, while the ratio per capita rose from 0.046 to 0.146 sqm. Over the same period, vacancy fell from 23.77% to 3.09%, showing that the increase in supply was accompanied by the absorption of new space.
The pace of deliveries accelerated mainly from 2020 onward. A total of 1.27 million sqm was delivered that year, followed by 2.37 million sqm in 2021 and 2.68 million sqm in 2022, the highest level in the recent series. After 1.69 million sqm in 2023, another 2.05 million sqm came to market in 2024 and 2.13 million sqm in 2025. In 2026, deliveries had reached 1.15 million sqm as of the date of the survey.
Projects delivered in 2026 include Condomínio Piracicaba 2, with 147,000 sqm of GLA, Golgi Cajamar – Phase I, with 54,300 sqm, XP Exeter Contagem, with 46,700 sqm, and HGLG Simões Filho – Phase I, which added another 34,400 sqm.
Since 2016, the Southeast has concentrated approximately 13.14 million sqm of new Class A, A+ and B stock, well above the 1.79 million sqm delivered in the Northeast and 1.30 million sqm in the South. The Central-West and North added around 196,000 sqm and 195,000 sqm, respectively.
Pre-leasing fluctuated during this period, showing that demand does not depend only on leases signed before delivery. The rate stood at 68.67% in 2020, 66.43% in 2021 and 60.57% in 2022, before falling to 56.49% in 2023 and 43.51% in 2024.
Even with less than half of the new stock delivered in 2024 pre-leased, more than 2 million sqm came to market without causing a significant increase in vacancy. In 2025, the pre-leasing rate recovered to 59.58% and reaches 76.22% for projects scheduled for delivery in 2026.
Costs limit new projects
If demand continues to absorb delivered space, the main obstacle to a stronger expansion lies in the economic feasibility of new developments.
According to Market Analytics, the average total replacement cost of industrial properties is approximately R$3,687 per sqm, with around R$2,118 per sqm corresponding to the average construction cost, in addition to land and earthworks. At the same time, leases effectively recorded in 2026 show an average rent of R$30.37 per sqm per month, equivalent to roughly R$364 per sqm per year. On a gross basis, this annualized income corresponds to approximately 9.9% of total replacement cost, before accounting for vacancy, rent-free periods, taxes, expenses and the cost of capital.
This mismatch helps explain why vacancy close to 3% and still-strong demand do not automatically translate into a new wave of developments. For developers, land, construction and financing costs must be compatible with the level of rent that occupiers are willing to pay.
Expansion has still not been sufficient
The Brazilian market therefore does not show signs of a lack of demand for new industrial properties. The main constraint on faster expansion lies in the feasibility of new projects, in an environment where construction and capital costs need to find a balance with prevailing Market Rent levels.
