MAY 2023CONSTRUCTIONBUSINESSREVIEW.COM8IN MYOPINIONAlthough the Brazilian population is almost 65 percent of the American one, our national logistics portfolio is just 7 percent compared to the US one (US=937mm sqm/ Brazil = 63mm sqm, in 2022). Truth is that the Logistics market started its expansion in a more structured manner after 2000 and is now mainly focused in the Sao Paulo 35km radius, the Southeast portion of the country, where the biggest consumer market is concentrated.Retail companies started building their own warehouses initially, without thinking much about a functional circulation/ building, and after a while, most of them decided to move to new facilities in a `fly to quality` movement, also determined to focus their efforts and investments on its core business, not in Real Estate. In that scenario and also with all the new real estate funds development, international companies started investing in developments in our country, seeing this huge opportunity to invest in a more structured manner, bringing best-in-class specifications for international occupiers.When we say `best in class' we always take under consideration clear height (12m), good circulation with wide truck courts, the possibility of the individual truck court to different users, security systems, sprinklers, good air flow/ air exchanges, natural lightning, amenities, LEED certification, and so on.We usually say that `investing in Brazil is not for amateurs', referring to all difficulties connected to greenfield development in this country. For those who don`t know, we have very restrictive environmental legislation, and getting a full construction permit can take you more than one year. It is also very hard to find good available sites on the hottest logistics spots within the metropolitan areas that do not have DEVELOPMENT OF THE LOGISTICS WAREHOUSING MARKET IN BRAZILBy Mariana Picolli, Vice­President, Design & Construction, Brookfield Properties Mariana Picolli
< Page 7 | Page 9 >