The industrial market in Brazil is experiencing significant growth. Over the past three years, from 2020 to 2022, a total of 6.1 million square meters of Class A+ and A industrial properties have been delivered throughout the country. In 2023, up until the third quarter, 1 million square meters of area have already been completed. Looking ahead to next year, there are plans for the development of an additional 2.8 million square meters. 

Data from the SiiLA data analysis platform, Market Analytics, reveals that as new assets are introduced, the overall vacancy rate is decreasing. Currently, the vacancy rate for high-end properties nationwide is below 10%. 

One of the companies making substantial investments in new logistics condominiums is cy.capital, with active projects in São Paulo. Bruno Ackermann, a partner at cy.capital, notes, "There is a significant amount of product set to enter the market in the coming periods, and when compared to absorption rates, we view it as a healthy influx of new stock." 

Among the projects scheduled for delivery next year is the second phase of Cy.Log Guarulhos, a development spanning 110,000 square meters located 31 km from São Paulo's city center. Cy.capital is currently completing the first phase of the project, which was toured by SiiLA ACADEMY students in November. 

While there is a high volume of new developments anticipated for completion, it's important to note that their actual completion is not guaranteed. Ackermann explains, "In logistics, there's a significant hurdle, namely the approval process. Many players are eager to develop, but the actual volume that gets delivered is often limited. Timelines can be extended, with projects initially slated for a six-month completion sometimes taking 12 or even 18 months. There's a complex process involving municipal and state approvals, which can be quite rigorous for warehouse projects." 

The most substantial project slated for the next year is a development by Brookfield, aiming to deliver a property covering nearly 215,000 square meters in Guarulhos, at the Parque Logístico Guarulhos II.