The expansion of the logistics industry across Brazil, including the increase in new stock in Minas Gerais state and other cities, has significantly impacted the performance of industrial assets in Rio de Janeiro. As a result, the vacancy rate in the state reached 16.6% by the end of the first quarter of this year, marking an increase of over 1% compared to the previous quarter (Q4 2022), being the second higher rate for all stated mapped by SiiLA in the country. The average vacancy rate for Brasil is currently at 9,44%. This data comes from the SiiLA Market Analytics platform.  

The increase in vacancy rate can be attributed to various factors, including the low net absorption of only 8,000 m² recorded in the first three months of 2023 and the delivery of the Modular Santa Cruz asset, which is currently 100% vacant. Additionally, some companies, including L’Óreal, have recently announced their decision to transfer their logistics operations to other markets in the country. This relocation is driven by a range of reasons, such as safety considerations, transportation costs, competitive rental prices, and the aim to be closer to major consumer centers.

In terms of occupancy profile, companies in the retail sector dominate with 34.27%, followed by the transportation and logistics sector with 25.21%. The most significant absorptions in the quarter were observed in assets such as Bresco Resende (Class A+), Log Campo Grande (Class A), and Syslog Galeão – Duque de Caxias (Class A). Notably, the retailers Via, Comprafácil, and the GPA group are the largest tenants of industrial properties in the state, stats the Market Statistics from Market Analytics platform.

It's important to consider that the logistics hub in Brazil is primarily concentrated in the Southeast region, particularly in the states of São Paulo and Rio de Janeiro, which are the primary markets for such operations. Within the state of Rio, SiiLA: covers nine regions: Avenida Brasil, Belford Roxo/Nova Iguaçu, Campus, Duque de Caxias, Macaé, Pavuna, Queimados/Seropédica, Santa Cruz/Campo Grande, and Vale do Paraíba Fluminense.

Expansion of Industrial Stock with New Delivery in Santa Cruz/Campo Grande Region

The total stock in Rio de Janeiro state has expanded to 2,566,810 m² with the addition of a new property, the Modular Santa Cruz. This Class A asset boasts a Gross Leasable Area of 27,461 m² and is situated in the Santa Cruz/Campo Grande region.

By the end of March, the region recorded a vacancy rate of 13%, the highest ever reported by SiiLA since the start of its monitoring. This increase is attributed to the influx of new vacant stock, as the observed rate by the end of 2022 stood at 5.9%. However, there are other regions with even higher vacancy rates, such as Pavuna at 17.8% and Duque de Caxias at 26.4%.

All of this data was collected by the research team at SiiLA and is already available to subscribers of the Market Analytics platform, along with projections for how the market is expected to perform until 2025. Learn more here.