SiiLA Mkt Stats Q123: Significant Increase in Industrial Real Estate Stock in Brazil's Major States

The industrial real estate market in Brazil experienced a significant increase in new inventory during 2023. Notably, São Paulo, Minas Gerais, Rio de Janeiro, and Santa Catarina collectively saw a surge of over 187,774 square meters of Gross Leasable Area (GLA).

The São Paulo region accounted for nearly 50% of the newly delivered stock. Assets located in Embu, Guarulhos, and Grande ABC, all within a 30 km radius of the state capital, contributed to this remarkable growth. The pre-leasing activity was robust, with almost half of the new inventory pre-leased, according to SiiLA Market Analytics. Noteworthy expansions took place at CLIR Imigrantes 2 - Centro Logístico, owned by Sanca in the Grande ABC submarket, and Parque Logístico Guarulhos III, owned by Brookfield in the Guarhulos submarket. Furthermore, the recently delivered Cy.log Embu, developed by Cy. Capital, added to the industrial landscape of the Embu submarket.

The surge in new inventory is not limited to São Paulo alone; other Brazilian states are also experiencing notable growth in their industrial real estate markets. In Minas Gerais, over 51,000 square meters of new space was added to the Extrema region. In the Santa Cruz/Campo Grande region of Rio de Janeiro, a new asset was delivered, signaling the region's expansion. Additionally, Santa Catarina witnessed the delivery of a new Class B asset measuring 19,258 square meters in Florianopolis.

In the following sections, we will delve into the unique features of these noteworthy properties, exploring how they contribute to the evolving landscape of Brazil's industrial real estate market.

Cy Log Embu:

Cy Log Embu, situated in São Paulo's vibrant Embu region, marks a significant addition to the industrial real estate landscape. This brand-new property, delivered in February 2023, boasts a spacious Gross Leasable Area (GLA) of 36,307 square meters, a lofty ceiling height of 12 meters, and an esteemed A+ rating.

During its final construction phase in 2022, SiiLA ACADEMY students were granted an exclusive opportunity to visit Cy Log Embu, gaining firsthand knowledge of its distinctive features. As part of SiiLA's comprehensive coverage of Brazil's industrial property market, SiiLA CEO Giancarlo Nicastro interviewed Bruno Ackerman, a partner at Cy. Capital, unveiling valuable insights into this exceptional asset.