Companies without ESG commitments will lose space in the real estate market, says GLP Director

After following the interview with Hilton Rejman, Executive Vice President of Brookfield Properties, and Diego Fonseca, Partner at Jive Investments, in today's edition, we highlight logistic assets and talk to André Gavazza, Development Director at GLP Brasil.

Read the full interview with the executive's perspectives on the Brazilian logistics scenario:

REsource: What are your expectations for the logistics real estate sector in 2024?

André Gavazza: In the Brazilian market, we still see growth opportunities with the advancement of e-commerce and the "flight to quality" movement, with companies seeking more efficient logistics facilities, with greater storage utilization, complete infrastructure, strategic location, and technical quality that allows cost optimization.

RE: Are there innovation initiatives planned by GLP for the next year?

AG: We believe that the path to a more efficient logistics sector involves innovation, with technological solutions capable of optimizing all stages of cargo transportation. Therefore, GLP has also reinforced its presence in the logistics ecosystem, investing in companies that bring innovative proposals to the sector, creating a more efficient supply chain.

In Brazil, we have invested in three technology companies whose businesses focus on last-mile technology, telematics and IoT, fleet management, and smart lockers.

RE: André, what are the main challenges you expect for the sector?

AG: From the perspective of new developments, the macroeconomic and political scenario has an impact on business. Increases in construction material costs and interest rates affect prices. However, major players like GLP, operating large projects planned with a long-term vision, tend to have greater negotiating power with suppliers to minimize this impact, generating economies of scale. The licensing process has also been a challenge as we start developing projects closer to major urban centers and in more densely populated areas.

RE: And what trends are expected to transform the sector next year?

AG: A fundamental aspect for the logistics market today, and that should persist in the coming years, is the concern for ESG. There will be increasingly less room for players whose central themes in their strategies do not include positive social impact, the reduction of their carbon footprint, and the conscious use of natural resources. As leaders in our sector, we always seek to inspire the market to adopt the best international sustainability practices in the construction and operation of logistics facilities.