When we talk about a decline in online sales or even a "crisis" in retail, questions arise regarding the possible impacts on commercial real estate occupancy. The most emblematic case that we can mention to illustrate the concerns of owners and investors is the Americanas' request for judicial recovery. Additionally, Tok&Stok also surprised the market a few months ago when it faced legal action in an eviction request from na industrial property where its distribution center is located in Extrema, Minas Gerais.

However, in the case of Tok&Stok, even if the company needs to return the occupied area in the future, the trend is that the asset will not remain unoccupied for long. Currently, the company occupies the Extrema Business Park Block I, a Class asset, with 66,940 square meters of Gross Leasable Area (GLA). The strategic location and quality of the asset are strong indicators that the space, if vacated by the retailer, should not remain vacant for long. Additionally, there are few vacancies for those wishing to establish or expand operations in the Extrema region. By the end of the first quarter of 2023, the vacancy rate for industrial properties there stood at 1.2%, one of the lowest in the country.

Another piece of information that favors the market for industrial properties is that not only the e-commerce sector has driven the increase in leased warehouse space in recent years. In an exclusive study by SiiLA, we can see that other sectors have also expanded their leased area within Brazilian industrial properties over the past two years, such as the pharmaceutical and information technology sectors, with growth rates of 76.71% and 71.68%, respectively.

It is a fact that there was a significant boom in e-commerce, which drove the demand for industrial assets during the period of isolation caused by the Covid-19 pandemic. However, this surge is unlikely to be repeated anytime soon as it was an atypical phenomenon. Real estate market experts are starting to observe a stabilization in the industrial sector, with the demand for e-commerce space returning to its usual pace, as street stores and malls are operating normally.

For real estate players like independent asset management firm Cy Capital, the industrial properties market is entering a new phase, driven by rising costs and a trend of stabilization in absorption levels (i.e., leased area in these assets). According to Bruno Ackermann, the company's logistics fund manager, this market is expected to maintain consistent demand and supply throughout 2023. You can read the full interview and more insights from Cy Capital by following this link.

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