According to Market Analytics by SiiLA, gross absorption of A+, A, and B-class industrial properties reached 983,900 m² nationwide in Q1 2025. A significant portion of that volume was concentrated in the 10,000–25,000 m² segment — offering an ideal balance of cost, network reach, and operational efficiency.

Assets in this range offer both flexibility and scalability. They’re large enough to support complex operations but compact enough to enable efficient regional distribution and cost-effective leasing. This combination makes them especially attractive to e-commerce players, and companies gradually expanding their spaces.

During the COVID-19 pandemic, demand shifted to much larger formats, peaking between 2020 and 2022 amid soaring online consumption. Logistics giants like Mercado Livre, Amazon, and Shopee led the way with leases above 50,000 m², with many deals exceeding 75,000 m².

In recent years, absorption volumes have slightly declined from the 2021 peak, but the drop is seen as part of a natural operational adjustment — not a market downturn. New developments are still underway, and SiiLA’s intelligence team sees continued growth potential.

Brazil’s macroeconomic environment, however, presents headwinds. In May, the Monetary Policy Committee (Copom) raised the benchmark Selic rate to 14.75% per year. High interest rates restrict credit, dampen consumption, and slow business expansion. According to the Brazilian Central Bank, every 1 percentage point hike in the Selic adds over R$50 billion to gross public debt annually.

The Brazilian Association of Real Estate Developers (ABRAINC) warns that this ripple effect impacts the entire production chain — raising input costs, stalling investments, and hindering job creation.

Despite a challenging backdrop, expectations remain positive: as the economy stabilizes and interest rates potentially decline, the industrial sector is expected to resume its growth trajectory. And one trend is clear — 10,000 to 25,000 m² warehouses will likely remain in high demand, offering a winning mix of operational strategy, cost efficiency, and flexibility for a fast-evolving market.

Looking for space for your operations?

If you’re searching for a new logistics site, explore SPOT to find industrial properties with available space across Brazil — filter by location, size, asset type, and more. Visit: spot.siila.com.br