Prologis CCP is not allowing Brazil’s economic crisis get in the way of its growth plans. As the world’s largest developer and manager of logistics condominiums, Prologis has been present in the country since 2008 via a partnership with Cyrela Commercial Properties (CCP).

Brazil did not have a portfolio of quality warehousing of the level that Prologis CCP customers expect, so we invested to buy land and build warehouses, with a focus on the Rio-São Paulo markets,” said Prologis CCP President Hardy Milsch, speaking during JLL’s annual client meeting.

The first project was delivered in 2011. Today, the company’s portfolio comprises almost 600,000 m2 of built area in five parks, plus five projects under way that will increase this stock by 50%.

We also have sufficient land to build approximately 1.5 million m2 more in the next four to five years, and we will continue to look for well-located land, next to highways,” he said.

Milsch accepts that the current Brazilian crisis represents a challenge, but he is optimistic.

The fundamentals that make Brazil an attractive market have not changed. There are 200 million people whose confidence might have been shaken right now but they have to keep on consuming. And that requires logistics warehouses.”

Milsch said that Prologis CCP has been growing much faster in Brazil than has Prologis in Mexico. “It took us 15 years to reach 3 million m2 in Mexico,” he said. Today, roughly 60% of Prologis CCP customers are multinationals and 40% are local companies, who are coming to appreciate the quality of the warehouses and recognize their impact on logistics efficiency.

E-commerce growth is another factor driving the market for logistics warehouses. Milsch calculates that selling US$1 billion via traditional retail requires 100,000 m2 of space, while e-commerce requires three times more space in regional and national distribution centers.

JLL: expertise in warehouses

JLL has extensive experience in this segment, with specialized teams that focus on each step of the process. The company can advise developers in the choice of location and the search for land. On the other side of the market, JLL can help companies find warehouse options to meet all business requirements.

Photo: Rogério Gomes – Estúdio Caza.
Read the accompanying report – “More modern warehousing increases logistics efficiency”