High-end logistics market continues at a strong pace and has stabilized vacancy | 1Q2022
Gross and net absorptions were a record for the last four years.
The first quarter of 2022 started with a busy in the Brazilian high-end condominium market. It was the best start in the last four years, with record gross and net absorption in the period, according to the First Look study carried out by JLL.
The scenario of many movements also included a large delivery of new stock. There were more than 537,000 m² of newly opened developments across the country, with the largest volume in the states of São Paulo and Minas Gerais. The forecast is that another 3 million m² will be delivered by the end of 2022. As a result, the vacancy rate, which recorded consecutive declines, remained stable, with a small increase of 0.12 p.p.
For André Romano, manager of the Industrial and Logistics Division at JLL, this stabilization is natural. “During the pandemic, companies sought to quickly address operating bottlenecks. Now, we see more strategic and punctual occupations, within a scenario of high asking prices, to meet demands that were left open”, he highlights.
Minas Gerais' growth
The southern region of Minas Gerais has registered frequent growth in absorptions. “The projection is that the region will receive almost half a million m² in new developments by the end of the year, with a high expectation of absorption, since the market has shown increasing interest in cities like Extrema, for example. This will position the state of Minas Gerais as the second largest logistics hub in the country soon”, concludes the executive.