Giancarlo Nicastro, CEO of SiiLA, Highlights Strong Demand for Industrial Properties at ABRALOG Event

The executive presented exclusive SiiLA data for Q3 at an event focused on industrial real estate professionals in Brazil

By: SiiLA News

10/09/2024

On Tuesday (8), Giancarlo Nicastro, CEO of SiiLA, delivered a presentation at the ABRALOG Real Estate meeting, held at JHA Corporate Boutique in São Paulo. Among the attendees were prominent industry executives, including André Gavazza from GLP and Simone Santos from Binswanger SDS.

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Nicastro shared exclusive insights based on SiiLA’s Q3 2024 data regarding the performance of industrial properties in Brazil. He began by emphasizing the average Market Rent for Class A+, A, and B industrial assets, currently standing at R$21.88 per square meter. “The country now has a total inventory of 26.396 million m² of industrial space, with 20 million m² located in the Southeast region, where the average rent per square meter is R$22.53,” he explained.

National Market Rent has increased by 9.84% over the past year, up from R$19.92/m² in Q3 2023, according to SiiLA’s data. Nicastro also noted a decrease in the vacancy rate during the same period.

Market Rent, known as "Valor de Mercado" in Portuguese, is a unique metric developed by SiiLA. It determines the true value per square meter of commercial real estate, considering factors such as the asset’s build quality, recent transactions, property and regional availability, and commercial terms. This metric is exclusively available to subscribers of SiiLA’s Market Analytics platform in Brazil.

São Paulo Leads Brazilian Inventory with 14.4 Million m² of Space

Photos: SiiLA

During his presentation, Giancarlo Nicastro underscored the limited addition of new stock in São Paulo state during Q3. Only 5,000 m² was delivered, representing an expansion at the Rio Claro Complex. “Strong demand coupled with low new supply has driven the vacancy rate down to 7.70%,” he noted.

Nicastro also shared exclusive data on asset performance across São Paulo’s key highway corridors. “The Anhanguera/Bandeirantes corridor stands out, with SiiLA tracking 7.11 million m² of industrial space along these highways,” he explained. He further provided insights into the performance of assets along the interior-to-capital corridor, comparing vacancy rates, market rents, and other key indicators.

Closing the presentation, Giancarlo Nicastro discussed the performance of the area within a 30-kilometer radius, considered last mile, to serve São Paulo’s urban consumption. “Our occupancy analysis shows that consumer goods companies have increased their occupied space within the 30-km radius by 73% between Q3 2019 and Q3 2024,” noted the executive. “As in the rest of the country, Mercado Livre is currently the main tenant in this radius. Following are Shein, Magalu, and Lojas Riachuelo, all with a strong presence in e-commerce,” he concluded.

ABRALOG is a Brazilian logistics association, and its Real Estate committee, responsible for organizing the event, holds monthly meetings addressing relevant topics for the industrial real estate market.

ABOUT THE JHA CORPORATE BOUTIQUE

JHA Corporate Boutique is a high-end development that joined São Paulo’s inventory in May 2024. Part of RBR’s portfolio, the property offers 5,600 m² of corporate space in the Itaim Bibi area. Visit the property page on the SPOT! platform.

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ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.