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LOG CP Executive Explains How the Flight to Quality Impacts Company Operations

  • Marcio Siqueira, Executive Director of LOG CP, explains the "flight to quality" strategy and how the company benefits from this movement
Marcio Siqueira, Executive Director of LOG CP
Marcio Siqueira, Executive Director of LOG CP
By: SiiLA News
05/21/2024

According to the Omie Small Business Survey, entrepreneurs are optimistic about the future. The survey shows that 83% of small businesses have a growth outlook. Additionally, the Omie SME Economic Performance Index shows a 7% growth in real financial transactions in 2023.

The Omie Index also indicates a 17% growth in the industrial sector and a 4.4% growth in services. The transportation, warehousing, and postal services subsector grew by 4.9%. Data from SiiLA's Marketing Analytics also records this growth; the Transport and Logistics sector, for example, saw a 10.8% growth in occupancy in Class A+, A, and B industrial properties over the last 12 months.

The Omie survey also showed an expectation of 3.1% growth in 2024. A concept that fits into this is the "flight to quality," which is when companies make changes in their occupancy to higher-quality developments.

Marcio Siqueira, Executive Director of LOG CP, explains a bit about the "flight to quality" strategy and how the company benefits from this movement. Siqueira explains that part of LOG CP's development strategy is to seek locations lacking premium developments.

"What happens is that LOG CP's strategy is really geographical diversification. From the moment we opened up this range to be not just in the Rio-São Paulo axis, but in Brazil as a whole, we are present in all regions of Brazil. Today, we reach regions where you only have street warehouses. So, we go to regions where there is no space in street warehouses and where there is growth potential; then we build our assets," he says.

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