The graph above highlights the São Paulo market's landscape. In 2023, the lowest vacancy rate for new inventory (orange points) was 20.85%. The dark blue points indicate the number of quarters it took for the new inventory to reach its lowest vacancy. Meanwhile, the light blue line represents the total market vacancy rate during the same period, which stood at 11.74%.

The graph demonstrates a noticeable change in behavior post-2019, attributed to the pandemic, according to experts. Social isolation benefited e-commerce companies, which occupied more space, reducing absorption times from over 10 quarters to less than six — a trend that continues today.

Data indicates that key tenants during this period were consumer goods companies, including major players like Shein and Shopee, which invested heavily in optimizing their logistics operations and distribution across Brazil.

The pace of occupancy for inventory delivered in the post-pandemic period (2021-2023) was 113% higher than in the pre-pandemic period (2016-2020). On average, 1.59 million m² were leased annually in the post-pandemic period, compared to 746,000 m² per year pre-pandemic. Additionally, new project launches between 2021 and 2023 were 161% higher than during the earlier period, as shown in the graph above.

Delivered in 2021, the GLP Guarulhos II stands out as the largest addition to new inventory since 2016. This property reached its lowest vacancy rate — zero — in just six quarters. Located within 30 km of São Paulo’s city center, it offers 496,000 m². See the graph:

• Read More: Pernambuco: The Rising Industrial Hub of Northeast Brazil

New developments within a 30 km radius of São Paulo show faster absorption rates, approximately one quarter quicker than those located farther away.

These properties account for 46% of all new inventory in São Paulo, totaling approximately 1.65 million m². In annual absorption, this radius represents 48% with a 93.6% occupancy rate, while developments located farther out show an 82.3% rate.