Manufactured Goods Sector Follows Industrial Growth and Increases Its Occupancy In Industrial Properties

IBGE data show growth in the industrial sector, directly impacting the occupancy of industrial properties.
Between 2021 and 2023, the area leased by companies in the manufacturing industry within Brazilian industrial properties soared by 78.5%. In contrast, during the same period, the consumer goods and transportation and logistics sectors saw growth rates of 36.4% and 26.6%, respectively.

João Marcos Lucas, founder of Belenus, the company responsible for leasing 40,000 m² of industrial properties

By: SiiLA News

02/26/2024

The industry is an important economic indicator for the Brazilian Institute of Geography and Statistics (IBGE), as relevant as GDP, inflation, and consumer and producer price indices. Institute data show that in 2023, the overall industry closed with a positive balance of 1.1%, referring to industrial production for the year.

The historical data series from the PIM-PF (Monthly Survey of Industry - Physical Production) database reveals that last year, from December 2022 to December 2023, witnessed a 3.03% increase in the overall industry's physical production. This fixed-base index, adjusted for seasonality, rose from 99.48 points in December 2022 to 102.5 points by the end of 2023.

The sector's growth is also reflected in the real estate market, especially among industrial assets, as shown by Market Analytics data. The 3.03% increase in 2023 was accompanied by a 31.17% increase in occupancy of class A+, A, and B industrial properties, rising from 178,000 m² to 259,000 m², solely in the manufactured goods subset.

One of the companies that contributed to this growth was Belenus, a company that manufactures fasteners and distributes hardware, tools, and various equipment. Alone, the Belenus occupies 40,000 m² in industrial properties. Its largest development is the Citlog Viracopos, with 39,000 m². In addition to this, there are the CLAS Condomínio Logístico e Armazenagem, located in São Paulo and Pernambuco, respectively.

Read more: Asking Rent for Industrial Properties in Brazil Soars Above Inflation in 2023

Financial Movement

According to the National Confederation of Industry (CNI), in 2023, the industrial sector saw a real increase of 2.9% in wage mass and 2.6% in the average income of industrial employees. CNI's Industrial Indicators data also show a 2% increase in real revenue in December.

In 2022, the industry represented 23.9% of Brazil's Gross Domestic Product (GDP). During this period, the manufactured goods subset saw its occupancy grow by 95%, while the GDP showed an increase of 2.9%.

Official GDP data for 2023 will be released on March 1st. However, on Monday (19), the Central Bank's Economic Activity Index (IBC-BR), considered a "preview" of GDP, recorded a 2.45% increase in 2023. It is expected that the 2023 Gross Domestic Product will approach 3.1%.

Growth

Over the past three years, between 2021 and 2023, the manufacturing industry has been one of the biggest highlights in terms of occupied area growth. During this period, the leased increased from 55,000 m² to 259,000 m², a growth of 78.5%. For comparison, during the same period, the consumer goods and transportation and logistics industries grew by 36.4% and 26.6%, respectively.

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