Recent data from Market Analytics unveils a trend in Brazil's commercial real estate market. The pharmaceutical and hygiene sector is emerging as a dominant player in industrial properties. Over the past year, this segment has experienced remarkable growth, with its leased space surging by more than 40%. It has gone from just over 472,000 square meters occupied in the third quarter of 2022 to a substantial 670,000 square meters by the end of October 2023.

This sector's continuous expansion can be attributed to the surge in the use of digital platforms for purchasing medications and health-related products. This shift has prompted companies within the sector to expand their warehousing capabilities and invest in efficient logistical operations to cater to consumer demand.

In the state of Minas Gerais, the Varginha submarket has become a hotspot for various pharmaceutical sector operations. Two noteworthy players in this region are CITLOG Sul de Minas, an asset owned by the Hedge Logística fund (HLOG11) and Porto Seco Sul de Minas. These developments house a range of notable tenants, including Cellera Farma, Libbs, and Eurofarma.

Breno Paiva, Director of Porto Seco Sul de Minas, mentioned that Eurofarma was the first company in this sector to establish a presence there back in 2017. Following this milestone, other pharmaceutical companies have begun seeking opportunities in the region.

"Many of these firms are affiliated with the FarmaBrasil Group, and word of mouth has led them to naturally explore this area for expanding their operations," said Paiva.