Expansion and Potential of Brazilian Industrial Properties Markets: Northeast and South on the Rise

Infrastructure growth and new investments are transforming the Northeast and South of Brazil into prominent logistics hubs.

Daniel Sorrentino, CEO of Pátria Investimentos, the company that owns the new industrial property in Bahia

By: SiiLA News

01/09/2025

It’s common knowledge: the industrial properties real estate market is concentrated in the Southeast region. Out of a total inventory of over 26 million square meters across the country, more than 20 million are located in this region.

The Southeast is home to the highest population densities and the largest concentration of companies. However, regions like the Northeast and South also have their merits.

The modernization of infrastructure in other regions is a key factor in attracting new investments, making these markets increasingly competitive and diversified.

Northeast: Growth and Potential

In recent years, Brazil's Northeast has shown growth in demand and investments in industrial properties. With an inventory approaching 3 million m², infrastructure modernization and the expansion of ports and highways have turned some states into true logistics hubs.

The largest market in the region is Pernambuco. With over 1.5 million square meters, the state holds more than 50% of the inventory tracked by SiiLA across the entire Northeast. The abundance of industrial properties in this state is driven by high demand from companies seeking to establish operations to serve the local market. Major players such as Amazon, Mercado Livre, and Americanas have leased space in the state.

Read more: Pernambuco: The Rising Industrial Hub of Northeast Brazil

Bahia is also in the spotlight due to its growing logistics sector. Notable investments in the region include the construction of a new Distribution Center for Mercado Livre, developed by FII Pátria LOG (HGLG11). The project will have a leasable area (GLA) of 132,3 thousand m², with delivery scheduled in two phases. Currently, the state's inventory exceeds 700 thousand m².

In addition to Pernambuco and Bahia, SiiLA also monitors industrial properties in the states of Ceará, Sergipe, Alagoas, and Paraíba.

South: Infrastructure and Logistics

Moving from the Northeast to the South, this region is another logistics hub in full development. With an inventory of nearly 2.5 million m², companies such as Magalu, Multilog, Renault Nissan Brasil, B2W, Amazon, and Shopee have leased spaces in the region.

Paraná leads the South in terms of inventory, with over 1 million m². Porto Alegre, in turn, accounts for 540 thousand m² of total inventory.

Today, SiiLA’s Market Analytics platform monitors industrial properties of Classes A+, A, and B in the states of São Paulo, Rio de Janeiro, Alagoas, Amazonas, Bahia, Ceará, Federal District, Espírito Santo, Goiás, Minas Gerais, Pará, Paraíba, Pernambuco, Rio Grande do Sul, Santa Catarina, and Sergipe.

To learn more about the platform’s data and analysis, visit siila.com/products

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