Popularly known for its sober skyline of increasingly tall buildings, São Paulo has 626,000 square meters of industrial properties of classes A+, A, and B, according to data from the SiiLA platform. The profile of companies occupying the industrial space in São Paulo consists mainly of Consumer Goods (36.5%), including e-commerce, and Transportation and Logistics companies (34.9%).

In addition to existing industrial properties within São Paulo city, there are companies investing in creating new spaces in the city to meet the growing demand from tenants for storage and logistics operations. Several such developments are already underway throughout the metropolis, including neighborhoods like Lapa, Mooca, Vila Leopoldina, Itaquera, etc.

For Stephen Tanenbaum, CEO and founder of SKUrban, a company investing in this business, the city's high population density makes these locations serve as small distribution centers to meet the population's demands.

"It's an excellent alternative for tenants to be closer to the end customer, whether B2B or B2C. Imagine: if you're making a delivery, is it more expensive to send the product from Lapa or Embu? The transportation cost for an individualized delivery tends to be cheaper within São Paulo than coming from outside," explains Tanenbaum.

SKUrban focuses on Co-Warehousing, shared warehouses, a concept Tanenbaum brought from the USA to Brazil. Operating for a year, the company has two warehouses in São Paulo, one in the Aclimação neighborhood and another in Lapa, both catering to companies maintaining operations in São Paulo.

Another model of horizontal condominiums is offered by GoodStorage, where Thiago Cordeiro is CEO. While the company's primary product is self-storage, it also has a industrial properties in the traditional format, also located in Lapa.

"The city of São Paulo concentrates the highest volume of company deliveries and the country's largest consumer market. Being in São Paulo means being close to our tenants, who are also close to their customers. Once the stocks are closer to the end customers, transportation is also optimized, without depending on trucks, for example. This allows some deliveries to be made by motorcycle, bike, or even on foot," says Cordeiro.