Giancarlo Nicastro, CEO of SiiLA, interviewed Thiago Cordeiro, CEO and founder of GoodStorage, in the second episode of the SiiLA PODCAST. In addition to discussing the company's history, the executives engaged in a conversation about the world of self-storage and the trends in this market.

The interview lasted approximately 37 minutes, taking listeners on a journey through the world of urban storage. Cordeiro shared the challenges and fears faced when opening the company in the country, highlighting how his international experience was crucial for implementation in Brazil.

Giancarlo Nicastro (GN): What is self-storage?

Thiago Cordeiro (TC): It's a self-storage solution. We are talking about properties within the city, within neighborhoods, with the goal of meeting the leasing needs of space, primarily for individuals. These spaces range from 1 m², called "Locker" or "Armarinho," to an average of 50 m², which is the offering of spaces from a traditional self-storage for temporary uses, motivated by events such as moves, renovations, mourning, among others. We also offer residence extension solutions, where people can rent 3, 4, or 5 m² on a monthly contract. Self-storage, more literally, is for this type of use.

GN: How does vertical self-storage work? We are used to seeing those horizontal ones, but how does this dynamic, seen in other countries and now in São Paulo, work?

TC: In the end, the city has its organic movements; it becomes denser, and the issue of asset prices changes. There are movements, for example, of older office buildings that have had very low occupancy and rental values in recent years, even some very empty. This opens up an opportunity for us to retrofit buildings for other uses.

In this way, in some places, we can do this, allocating a new use, where each floor is a space layout ranging from 1 m² to 20 m², with well-served corridors, elevators, and docks to reach by car. The city has a flexible space storage solution in a denser environment where it did not exist before. It's a cool concept of a microcenter; regions become more autonomous, self-sufficient in what they have to offer, making everything more efficient.

GN: You mentioned that GoodStorage for now only operates in São Paulo. What are the expansion plans?

TC: We chose to stay only in São Paulo until now, it's been 10 years in December, to gain scale within the same market and become more known. There is still much to be done. We understand that São Paulo is a more liquid and larger market, and we believe we have not saturated it yet. The city remains the focus of our activities.

We have a unit in Santo André that is doing very well, so we can perhaps look a bit in the São Paulo metropolitan region. We are not in other capitals because we understand that the thesis does not work in them, but it's more a strategic question for the company. In the next 2 or 3 years, I don't see the possibility of going much beyond the limits of the São Paulo metropolitan region, just as I don't see entering the larger industrial warehouse market, where there are already large players with extensive portfolios.

Our idea is to invest in smaller properties, smaller investments, but at scale, in the quantity and size of the properties, and within the city. This year, we delivered nine developments, currently operating about 320,000 m², trying to address the storage needs within the city.

GN: What have been the key learnings over these 10 years?

TC: When we started, there was some skepticism about this type of product. However, I believe that certain market laws apply in this situation because a well-developed offering addresses a need, even if it's not explicitly expressed by the consumer. Currently, we consistently manage to launch about three to four units per year. It's not necessary to wait until they are all occupied to launch new ones, and this shows that we are gaining traction. The market is maturing, and growth is natural.

The real estate sector requires a long-term vision. It becomes simpler because it indicates more or less what will happen, considering the cycles. It's a matter of trust in that. I know it's not easy in Brazil due to various issues, including a lack of financing. However, it has been a learning experience. So, looking at the long term, understanding where the market is heading, and believing that, even if it's not immediate.