Logistics parks: a hot market

Leitura de 6min

The logistics warehouses segment performed strongly throughout 2012, and promises to be even more dynamic in 2013.

A combination of factors, led by better performance of the Brazilian economy, should drive demand and consequently cause rental price for properties of this type to remain high.

A clear indication of this accelerating demand, which is rooted in the lack of well-located properties, is that currently most of the space available for new logistics centers in Brazil is rented to customers even before delivery.

The market forecasts the current stock will triple to meet this demand.

According to the On.point 2012 survey conducted by JLL, more than 13.2 million square meters will be delivered through 2016. All this growth has attracted the attention of funds from various parts of the world. These investors see great potential for development in the local market.

Projects undertaken by major players such as GLP Brasil, Hines, Fulwood, Succespar, ProLogis and GTIS have dynamized the segment, so helping push up property prices.

Rio de Janeiro and São Paulo account for more than 70% of new warehouse developments, but states such as Pernambuco – in particular the region around the port of Suape – and the southern city of Curitiba are also starting to appear in development projects.

This trend will be reinforced by the port development program announced by the federal government at the start of December 2012, which could attract investments of up to R$54 billion for improvements in the sector.

Logistics condominiums

GLP - Global Logistic Properties – Brasil

GLP – Global Logistic Properties – Brasil

Not even Brazil’s modest Gross Domestic Product (GDP) growth, predicted by the market to close out 2012 with expansion of just 1%, will be able to slow the pace of demand for new warehouses.

When all is said and done, this demand is supported by income and consumption growth that has built up over the last decade, and this has encouraged the arrival of foreign companies and stimulated the interest in developing new logistics condominiums.

These properties offer advantages such as cost, convenience, expandability (just rent another module) and security. Developments that consist of warehouses capable of receiving products from different companies have their rent and maintenance costs divided among various tenants, so reducing monthly outgoings.

This type of warehouse is becoming popular in Brazil and offers a good solution, especially for companies that cannot afford to maintain such a structure by themselves because they are very expensive.