Extrema (MG), Fortaleza (CE), Brasília (DF), Cabo de Santo Agostinho (PE), and other regions monitored by the SiiLA research team have near-zero industrial vacancy rates. This means that there are few or no available spaces in these locations for companies that need to install and/or expand their operations, whether they are e-commerce players, retailers, transportation and logistics companies, pharmaceuticals, food and beverage companies, or other industrial sectors that require warehouse space.

Given the growing demand for space in these regions and the limited available stock, the REsource editorial team interviewed key players in the commercial real estate market to provide readers with insights into how these companies are directing their efforts to meet market demands and continue on the path of growth.

According to Simone Santos, CEO of SDS Properties, the industrial real estate agency has been facing this challenge in the market for some time now. "The difficulty of finding industrial properties in regions outside the SP-RJ axis has always existed", she said. "Even more mature regions like Extrema, in the South of Minas Gerais, with 1 million square meters developed in the last 10 years and strong demand fueled by fiscal incentives and e-commerce, maintain a vacancy rate always below 5% and rental values above the national average."

In the case of low-vacancy markets, SDS typically monitors industrial projects still in the development phase to meet tenants' demands through pre-leasing or Built to Suit (BTS) assets. "In the logistics sector, the development cycle is shorter, and supply can grow significantly and quickly, putting pressure on occupancy and rents. We are always mindful of the supply and demand relationship in all markets, but we always analyze the depth of a market before starting a development", says Bruno Greve, Director of Investments at HSI, discussing the strategy adopted by the management firm. With an extensive portfolio of assets in Brazil and approximately R$12 billion under management, HSI is one of the largest investment managers, operating in the office, industrial, mall, hotel, residential, land development, and self-storage sectors.

On the other hand, the developer Fulwood plans to increase its presence not only in Extrema but also in Pouso Alegre and Betim. In the coming years, the company expects to offer approximately 400,000 square meters of new area in the state of Minas Gerais. In addition to the cities in Minas Gerais, the São Paulo-Campinas corridor is also on Fulwood's radar. "We have approved a project in Vinhedo because we believe that the São Paulo-Campinas corridor is quite interesting, especially around Anhanguera-Bandeirantes. In 2024, we should start a project of over 100,000 square meters", says Gilson Schilis, Director of the company.

The company's appetite does not stop there. In addition to the mentioned cities, Guarulhos (SP), Curitiba (PR), Florianópolis, and Joinville (SC) are other locations that are part of the development plans for industrial properties and are expected to contribute to the importance of other regions in the Brazilian logistics scenario.

It is a fact that the high demand for warehouses during the pandemic period has brought significant development to other regions of the country that were not fully on the radar of investors and developers before the health crisis. While the Southeast still has the largest volume of industrial properties inventory, the Northeast of the country recently surpassed the South region in terms of warehouse area, a strong indication that the decentralization of logistics in the country is gaining traction.

"The demand generated by e-commerce has intensified the perception of this scarcity scenario and has helped attract investors to less explored areas, such as Greater Salvador, Fortaleza, and Belém", adds Simone. For example, HSI is expanding an asset in Manaus (AM) by an additional 20,000 square meters, which has been leased to the retailer Bemol.