Decentralization of Brazilian Industrial Properties Is Not Happening at the Desired Pace; 46% of Projected Assets in Brazil Are in São Paulo

According to research by SiiLA's intelligence team, 4.5 million m² of new Class A+, A, and B assets are projected for the next two years.
The country's total stock could surpass 30 million by the end of 2026.

Bernardo Werneck, Director of BWDIASE, owner of the largest asset to be delivered by 2026: BWDiase Fortaleza

By: SiiLA News

07/24/2024

The industrial properties market is growing and attracting tenants looking to optimize their operations in the country. With a vacancy rate below 10% for the general Brazilian market, these condominiums are also of interest to developers and investors.

According to the Market Analytics platform, the current stock of such assets is 26 million m². By the end of 2026, the market could exceed 30 million m², as 4.5 million m² of Class A+, A, and B assets are projected nationwide. The analysis is based on assets that are in planning or already under construction and are scheduled for delivery between the third quarter of 2024 and the fourth quarter of 2026.

However, it's worth noting that developers often adjust deliveries based on supply and demand to determine the best time to deliver their assets. This is common for industrial developments since construction time is short and can be completed in about eight months if the land leveling process is complete and the project is approved.

46% of Projects Are Located in São Paulo

Delivery of new stock scheduled by state

Currently, São Paulo has the largest stock of industrial developments in Brazil and concentrates more than half of the expected assets for the coming years. There are 2 million m² under construction or in the project phase, representing 46% of the entire expected stock. The state is Brazil's main logistics hub, with 14.1 million m² of completed industrial area.

Minas Gerais ranks second among the states with the largest new stock expected by the end of 2026, with 698 thousand m² of anticipated area. Pernambuco is in third place, with 386 thousand m².

Read more: Decline in Pre-leasing Volume in Brazilian Industrial Properties Reflects Economic Pessimism

Assets

The largest assets scheduled for delivery are spread across various regions of the country. The largest asset is BWDiase Fortaleza, a 190 thousand m² complex under construction in Itaitinga, in the metropolitan region of the capital of Ceará. Unless there are advances or delays, the asset is expected to be ready in 2025, and the complex will include five units.

The second-largest is the expansion of BWDiase Extrema II, with 167 thousand m², located in Extrema, Minas Gerais.

The Parque Logístico Aero I in Guarulhos, which is undergoing expansion, is the third-largest asset, expected to be delivered in 2025 with 155 thousand m².

SiiLA's analysis identifies 92 developments scheduled for delivery by the end of 2026, distributed across 37 regions in 13 states.

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