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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.
Industrial properties are complexes with more than one warehouse that house multiple companies. Their main characteristic is precisely being a condominium, similar to corporate buildings, with a gatehouse, manager, etc., but laid out horizontally.
Meanwhile, street warehouses are storage locations, usually single-tenant and often lacking all the amenities and facilities of a logistic condominium, such as 24-hour security, maneuvering yards, common areas, etc.
Siqueira explains that all the advantages of properties contribute to the "flight to quality," as these attributes help establish a new operation with higher quality during an expansion phase.
The executive director explains that the "flight to quality" occurs due to two factors: the quality of the assets - the amenities - and the operational gain that the tenant's logistics achieves.
"One of the most common problems is the traffic caused by truck maneuvers at the entrances of the developments. In industrial complex, this issue is typically not present because there is an external parking area where the truck driver can arrive and park. As a result, the overall traffic in the region improves, but many people do not measure the impact this has on the organization of cities. Therefore, when developing these assets, it significantly improves the situation," he explains.
An example that can be given is the concentration of logistics operations, where a company has operations scattered across various developments but consolidates everything in one location.
"Sometimes the client is in several warehouses; they expanded as they could and ended up in various separate developments, and then they want to integrate the operation. That is also normal to happen," he concludes.











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