Continued Growth in Occupancy Rates and Industrial Inventory Revealed in SiiLA Data for Brazil

The largest concentration of industrial properties in the country is in São Paulo, a state that accounts for 54% of all such ventures in Brazil. In recent years, the stock of these assets has been growing, as tracked by the SiiLA Market Analytics platform.

Currently, there are 430 A+, A, and B-grade industrial properties monitored throughout Brazil, totaling 23.6 million square meters of total area and more than 6,000 tenants. Companies focused on consumer goods occupy 41.3% (equivalent to 8.5 million square meters); the transport & logistics sector holds the second position with 28.5%, representing 5.8 million square meters of leased space; and in third place, manufacturing account for 14.4%, with an area of 2.9 million square meters.

Vacancy History

After a period of rising vacancy rates, recorded in 2017 when the vacant space reached 24.5% in industrial properties, the vacancy rate started to decline in the following years. In 2018, despite being marked by elections and a truckers' strike, as well as migration from Northern Brazil due to the Venezuelan crisis and positive government promises at the time, the vacancy rate dropped to 19.7%.

In the subsequent years, during the COVID-19 pandemic, the vacancy rates for industrial properties continued to decrease, in contrast to the trend seen in the office market. The years 2020, 2021, and 2022 showed vacancy rate variations of 13.7%, 10%, and 10.5%, respectively. Currently, the national average stands at 8.2%. For top-tier assets (Classes A+ and A) in São Paulo specifically, the forecast for 2023 is a vacancy rate of 9.4%.