Brazil Industrial Outlook | 4Q2023
The state had a record for gross absorption and is expected to continue attracting occupants in 2024.
The logistics warehouse market has accumulated consecutive years of good performance and 2023 was no different. According to the First Look report, carried out by JLL, this segment accumulated gross absorption of almost 4 million m² and net absorption of 2 million m².
A large part of these negotiations took place in the State of São Paulo, which registered a record number of leased volumes in the year. In the 4th quarter, for example, SP was responsible for 66% of the national net absorption performance. “São Paulo has never stopped being an important hub and the largest market for logistics warehouses in Brazil. In recent times, however, it has won competition from nearby states such as Minas Gerais and Espírito Santo. Now, with changes in taxation regulations, its protagonism has been rekindled with São Paulo's developments once again concentrating the interest of occupants”, analyzes André Romano, Industrial, Logistics and Data Center manager at JLL.
The good winds of 2024
The JLL survey indicates that 2024 should continue to be busy. The expectation is that more than 2 million m² in new developments will be delivered throughout the year, 27% in São Paulo and 29% in Minas Gerais, especially in the Extrema region.
With the expectation of positive net absorption, it is expected that the vacancy rate and the average asking price in the country will be maintained. “We observe that the market has increasingly matured towards balance”, concludes the JLL specialist.
