Warehouse Shortage in Manaus Raises Costs, Limits Expansion

Marco Ribeiro, Director at Capright, explained that costs are linked to characteristics that are highly specific to the region, mainly related to liquidity and risk: “Rental rates and replacement costs tend to be structurally high due to supply logistics and the dependence on waterway transportation to bring in materials, equipment and construction supplies. These factors put pressure on both potential income and development costs.”

The region’s challenges are not limited to costs. Steve explained that climate-related challenges must also be taken into account, particularly in a region that is highly dependent on waterways: “The 2024 drought undoubtedly increased the need for inventory in the region so that companies would not risk a production shutdown the following year. In early 2025, we noticed that companies began looking for space to prepare in case the same situation occurred in the second half of 2025. Some of them were seeking shorter contracts, such as 12-month leases.”

Rainfall is also frequent, which can make earthworks more difficult and delay construction. If a site is not ready for work in the second half of the year, during the dry season, it will probably have to wait another six months, significantly affecting the project’s returns.

For Hines, however, the main challenge is finding the ideal site to begin a project, as the Managing Director pointed out: “The main difficulty today is finding a well-located site with proper documentation and a price that makes the development viable, since the warehouse shortage has also pushed up land prices.” The Brazilian market currently has a vacancy rate of 4.42%, according to SiiLA Market Analytics’ report for the second half of 2026, underscoring the shortage of space compared with growing occupier demand.

With the rapid growth of e-commerce, logistics operators are developing strategies to provide distributed service across all regions. The specific characteristics of properties located in Amazonas create a need for innovation in the sector.

Loggi explains that, in addition to partnerships with micro-carriers, investments in artificial intelligence, clustering and routing through proprietary technology enable broader and more predictable service.

According to the company, these are the main elements for addressing structural challenges: “It is worth noting that the North Region has significant logistics particularities: low population density in several inland areas, long distances that make operational recovery slower in the event of disruptions, dependence on air transportation—whose freight capacity may be limited during certain periods—as well as internet coverage that remains restricted in some locations, affecting the full operation of management and tracking systems. It is precisely to address these challenges that we continue to strengthen our partner network and our logistics technology.”