Zero Vacancy in Five States Poses Challenge to Industrial Properties Expansion in Brazil

Santa Catarina, Paraíba, Espírito Santo, Alagoas, and Amazonas have no available space, while new projects aim to meet pent-up demand

Marcio Siqueira, Chief Operating Officer at LOG

By: SiiLA News

09/17/2025

Data from Market Analytics shows a vacancy rate of 7.68% in industrial properties. However, this average does not reflect reality uniformly: while some regions register high rates, others report very low or even zero vacancy.

High vacancy has been a recurring theme in the sector, but low vacancy also brings both challenges and opportunities. States such as Santa Catarina, Paraíba, Espírito Santo, Alagoas, and Amazonas currently have zero vacancy.

Marcio Siqueira, Chief Operating Officer at LOG, spoke to REsource on the matter. The company plans to develop LOG Maceió II, scheduled for delivery in December 2026. Currently, Alagoas has no vacant space.

“LOG adopts a geographic diversification strategy that guides investments in new projects, based on thorough analyses of opportunities and client demand. We visit locations, study warehouses occupied by companies, and often find that they are using inadequate facilities,” he explained.

By: SiiLA

Read More: Record Growth: 7.9% Vacancy in Northeast Fails to Slow Logistics Expansion

Characteristics

These regions do not have a broad stock of logistics assets, nor do they share unique common traits. Manaus, in Amazonas, for example, has a limited stock of 307,000 sqm. The region is marked by the Manaus Free Trade Zone, which means that most industrial complexes are factories. As a result, the number of logistics condominiums dedicated to storage is smaller, since this demand is often met within the factories themselves.

In the case of Santa Catarina, available stock was fully leased in the second quarter of 2025 — the same occurred in Espírito Santo. Alagoas and Paraíba, on the other hand, have not seen new developments in years.

Future

Among these markets, only Alagoas, Paraíba, and Santa Catarina are expected to receive new stock. Santa Catarina leads the pipeline, with six developments scheduled for delivery between 2025 and 2027.

In Paraíba, expectations center on the expansion of CBI Log in Alhandra, scheduled for 2027. In Alagoas, LOG’s planned expansion project stands out in the Northeast.

“LOG has been studying these cities for about two years, as we know that e-commerce, food & beverage, and pharmaceutical companies show interest in operating in these regions but cannot find suitable facilities,” the executive added.

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