The True Cost of Industrial Properties: Going Beyond the Rent

Condominium fees in industrial assets encompass a wide range of operational and maintenance expenses. These include security, cleaning, upkeep of common areas, maintenance of infrastructure such as lighting and water supply systems, and administrative charges.

According to Marino Mário, CEO of Retha Imóveis, these costs are determined through careful budget planning. "Before starting 2025, we prepare a budget that outlines the condominium fees. This planning happens at the end of the previous year, based on forecasts from the current year. For instance, our cost projections for 2024 were based on 2023 data," explains Mário.

He also points out that the cost per square meter can vary significantly depending on the size of the property. "A logistics property spanning 100,000 m² will have vastly different condominium fees compared to one that is between 10,000 and 20,000 m²," he adds.

The main reason for this discrepancy lies in how fixed costs are distributed. Larger properties demand more services, such as landscaping and cleaning, but the overall costs are spread across a greater area. "For example, a 100,000 m² property may have condominium fees ranging between R$ 4 and R$ 5 per m², while smaller properties of 10,000 to 20,000 m² may see fees as high as R$ 8 to R$ 10 per m²," Mário explains.

Physical characteristics of the property also influence costs. Embankments—sloped areas that require specialized maintenance—are a notable factor. "In São Paulo, for instance, it’s rare to find flat land. Many logistics properties are built on sites with embankments, which require ongoing drainage and soil stabilization," Mário notes.

Another significant factor is dual gatehouses. Some properties feature two entry points, which increase operational costs due to the need for additional security personnel. Each gatehouse requires its own staff to ensure safety and access control, further driving up expenses.

Labor is the single largest component of condominium fees, accounting for 60% to 70% of total maintenance costs, according to Mário. This includes wages for guards, security personnel, landscapers, and maintenance workers, all of whom are essential for the property’s operations.

While 2024 was considered “a good year” for the logistics real estate market, Mário warns that 2025 could bring unexpected challenges, particularly due to inflation. "Inflation directly impacts the cost of services, supplies, and wages, which could put pressure on budgets across the board," he says.

Sustainability is also playing an increasingly important role in determining costs, albeit more gradually. "Sustainable solutions come with higher upfront costs but deliver significant long-term benefits for tenants. However, not all tenants are willing to pay a premium for these features," Mário concludes.