Brazilian Industrial Properties Inventory Surpasses 24 Million Square Meters

Brazil's total inventory of industrial properties has breached the 24 million square meter mark in the third quarter of 2023, an expanse requiring more than 123.7 Maracanã stadiums to accommodate. During this period, over 611,000 square meters of new inventory was added, and gross absorption (the total number of leases) surpassed 1 million square meters.

This monumental achievement encompasses 24,496,954 square meters of developments spread across the nation. The national average vacancy rate held steady at 9.8%, while net absorption reached almost 443,000 square meters. These statistics have been meticulously curated by the research team at SiiLA, a multinational real estate market data research firm specializing in the Latin American market. The data is available with a higher level of granularity and depth for Market Analytics subscribers.

Comparing these figures with previous quarters, the vacancy rate remained stable, with a slight 0.45% increase. However, absorption values saw a notable surge, with net absorption increasing by 64% compared to the previous quarter when tenant departures are subtracted from the entry of new occupants.

Since the beginning of the year, an impressive one million square meters have been added to the inventory. São Paulo has been at the forefront, welcoming the lion's share of new logistic areas, with a staggering 411,730 square meters added to its portfolio. The state now accumulates a total of 13 million square meters in A+, A, and B-grade industrial properties, boasting an average vacancy rate of 10.4%.

Following São Paulo's lead, Minas Gerais secures the second spot among states with substantial new inventory, adding 64,481 square meters. The market in Minas Gerais saw a gross absorption of 76,468 square meters, with a vacancy rate of 8.6%. Other states experiencing an influx of new inventory include Alagoas, Bahia, and Ceará.

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