Asking Rent for Industrial Properties in Brazil Soars Above Inflation in 2023

The average asking price for logistics properties has reached its highest level since the initiation of monitoring by SiiLA.

Thiago Cordeiro, CEO and founder of GoodStorage. The company's development within the city of São Paulo has an asking price around R$ 45/m².

By: SiiLA News

01/23/2024

The pinnacle of the commercial real estate landscape is evident in the latest figures, showcasing a record-breaking average asking rent of R$24.77 for high-end industrial properties (A+ and A) nationwide. These insights are derived from the most recent data provided byMarket Analytics, SiiLA's comprehensive commercial real estate data and analytics solution.

The data highlights a remarkable 7.79% surge in asking rent A+ and A class developments, surpassing the 4.62% inflation (IPCA) reported by IBGE for the same period in 2023. This increase is particularly noteworthy, rising from R$22.98 at the close of 4Q2022 to R$24.77 in 4Q2023.

Despite this, construction costs have also risen during this period. According to data released by FGV, the cumulative INCC-10 over the last 12 months stands at 3.30% as of January 2024.

Read more: Beyond Arrivals and Departures, Airports are on Their Way to Becoming a Cargo Distribution and Storage Center

Asking price performance

The upward trajectory in the asking rent has been consistently on the rise quarter by quarter since 2021, a trend attributed to the pandemic-driven surge in companies' demand for industrial spaces, optimizing nationwide product delivery.

Despite a substantial 27.31% increase in inflation since 2020, Market Analytics data indicates an even more robust growth of 30.29% in rental values for high-end properties during the same period

Read more: Logistics market trends in 2024

São Paulo Takes Center Stage

Boasting a substantial industrial property inventory of 13,606,073 m², São Paulo state stands as the key player in the Brazilian market, setting the standards for the industry. The average price for assets across the three main classes (A+, A, and B) in the state is R$25.69.

Notably, São Paulo claims the title of the highest asking price in Brazil, exemplified by GoodStorage – Vila Anastácio, complex spanning 22,000 m² within the capital, commanding an asking price of R$45/m².

Furthermore, in the state, close to São Paulo city, there is Bresco Osasco, situated in the city of Osasco and encompassing 29,000 m², with an asking price of R$43/m² in its lease agreement.

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