Occupancy Costs in Industrial Properties Are Rising, Demanding Strategic Attention From Tenants in Brazil

With rising costs and regional disparities, companies must consider more than just rent when planning their logistics operations

Gilson Schilis, CEO at Fulwood Industrial Properties, a company with facilities in Extrema

By: SiiLA News

05/27/2025

Data from SiiLA’s Market Analytics indicates that occupancy costs in industrial properties are rising across most regions of Brazil. First and foremost, it is essential to understand that occupancy cost goes beyond rent. It represents the total amount a company spends to use a logistics space, including expenses such as rent, property tax (IPTU), and service charges. In other words, it reflects the effective monthly or annual cost of operating in a given property.

SiiLA, a real estate market intelligence platform, adopts a methodology that considers three main components in its analysis of occupancy cost: market value (which corresponds to the lease value), IPTU, and condominium fees.

Based on these elements, it is possible for a property with a lower rental rate to still have a higher overall occupancy cost, depending on additional charges. This difference is evident when comparing the average occupancy costs in logistics developments located in Salvador and Guarulhos, as shown in the following chart.

Market Analytics Chart – Average occupancy cost for Class A+, A, and B properties

Currently, Salvador has a higher occupancy cost than Guarulhos, even though Guarulhos is one of the country’s main logistics hubs. The capital of Bahia, by contrast, is still far from reaching logistics maturity. The average occupancy cost in Salvador stands at R$ 36.46/sqm, while in Guarulhos it is R$ 34.99/sqm — a difference largely driven by the heavier tax burden in Salvador.

Cost and Context: Much More Than Rent

Local factors strongly influence occupancy costs. Extrema (MG), for instance, is exempt from IPTU — a factor that significantly reduces the total cost for companies. The occupancy cost in the region was R$ 27.37/sqm at the end of Q1 2025, according to SiiLA data.

Several companies have been investing in the Extrema region, including Fulwood, led by CEO Gilson Schilis, which has been securing major tenants such as Mercado Livre, DHL, Via, Tok&Stok, among others.

Meanwhile, Guarulhos (SP), despite its logistical importance, faces strong competition among properties, which tends to balance prices through the forces of supply and demand.

Highlights by State: Values and Variations

By: SiiLA

When broken down by state, São Paulo leads among the largest markets, with an average occupancy cost close to R$ 30/sqm. Rio de Janeiro and Minas Gerais stand out in terms of annual variation: 9.76% and 7.9%, respectively.

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