Panel SA: Logistics condominiums market delivered more than 1 million square meters in the 2nd quarter

Although the growth of ecommerce shows signs of cooling down with the end of the restrictions of the pandemic and the economic conditions are unstable, the market for logistics condominiums remains heated.

In the second quarter of 2022, the segment recorded strong inventory growth, with 855,000 square meters delivered in 12 new complexes and seven expansions, according to real estate consultancy SiiLA.

All that new footage put on the market could signal a sudden increase in idle space, which would be a problem for the industry. Since the end of last year, consultants have pointed to a stabilization of business in the logistics sector, ending the cycle of euphoria that began in 2020 with the beginning of the pandemic.

It could be a problem, but it wasn’t. According to SiiLA data, at least 70% of this new delivered footage was already pre-leased when the condominiums opened their doors.

The giant Amazon alone, which works exclusively with e-commerce in Brazil, now occupies 217,700 square meters. The company leased a warehouse in Log Fortaleza II, Log Recife, Cabo de Santo Agostinho (PE), and LPG Cajamar IV.

The company’s monitoring indicates that 2.1 million square meters in logistics condominiums will be made available to the market by the end of December. Almost half of this volume was ready in the first semester.

For consultancy JLL, the new stock could reach 2.4 million square meters. Today, the total inventory in this segment is 25.8 million square meters. The vacancy rate, which defines the percentage of spaces available for lease, is 9.34% on the national average, according to JLL.

In some regions, however, it can reach almost zero. In Minas Gerais, it was 0.8% in the second quarter, says JLL.

Joana Cunha with Fernanda Brigatti, Paulo Ricardo Martins and Gilmara Santos