Warehouse demand remains heated, thanks to the search for better locations and more modern facilities

Leitura de 6min

Even with the economy growing less than desired and industry facing difficult times, the market segment for high-end industrial sheds is still going strong.

Even with the economy growing less than desired and industry facing difficult times, the market segment for high-end industrial sheds is still going strong.Curiously, one of the reasons explaining the high demand for such properties is the recent increase in supply. Over the past three years, São Paulo and Rio de Janeiro, the most important markets, have added impressively to their inventory of high-end sheds – those with free headroom of 12 meters, floors that support three to five tonnes and a greater number of loading docks.

Given the availability of more convenient and modern sheds, companies in the transport and logistics chain began to migrate from old to new buildings, meaning that demand remained very strong,” said Pedro Candreva, Commercial Director at JLL.

In São Paulo, companies are most interested in sites along the corridor formed by the Anhanguera and Bandeirantes highways. This is generally seen as a privileged location with an excellent-quality road network.In Rio, companies have migrated to warehouses with better infrastructure, frequently located along the corridor from Av. Brasil to the Seropédica municipality.

Logistics condominiums

Many companies have redesigned their logistics process in the search for greater economy and efficiency. This has led many service providers in the sector to concentrate their operations in new distribution centers (DCs) or logistics condominiums. These are large spaces, capable of housing up to five transport operators at the same time, because companies contracting such services use several operators to handle their distribution.“Warehouses are like the ‘raw material’ of the services that these logistics operators offer, so being in modern, well-located facilities means having a business card to attract large new clients,” Candreva explained.The JLL executive mentioned increasing importation by domestic industry as another factor driving demand for high-end industrial sheds.“There is a growing volume of imported products coming in, especially in the electrical equipment, clothing and food sectors, and this leads companies to seek warehousing space.

New money

In addition to the great interest on the part of tenants, the ease and speed of building warehouses makes the sector attractive to real estate investors.

These characteristics and the very promising potential for development have led various funds and banks to take an interest in the sector,” Candreva said.

See JLL’s industrial properties