ANALYSIS OF LOGISTICS CONDOMINIUMS IN BRAZIL

In the last ten years, the market for high-end logistics condominiums[1] (class A or A+) has been registering an important growth, largely driven by the economic development of Brazil in this period. This evolution takes place in parallel with the growth in the representation of the storage activity in the logistical costs of companies installed in the country.

With physical structure and services shared with other users, the logistics condominiums allow flexibility for companies to locate their stocks and distribution centers, reducing the immobilization of capital in facilities. The privileged location (proximity to major roads and main consumer markets, and the potential to avoid circulation restrictions in large urban centers) and the offer of sophisticated services are also attractive for this type of development.

[1]Class A or A+ condominiums, for the most part, have an area of ​​up to 50 mXNUMX². The smaller modules have between 1 and 2 m², with ceiling height between 9 and 12 m and floor resistance of 5 to 6 ton/m². They are equipped with air conditioning, sprinklers, laser leveled floor, maneuvering yard and antistatic floor.

Examples of services found in the main class A or A+ logistics condominiums

USER PROFILE

Investments in new logistics condominiums and the relatively low vacancy rate confirm the interest of the Brazilian market in this type of solution. This interest varies according to the region of Brazil, with a direct correlation between the regional Gross Domestic Product (GDP) and the size of the consumer market. The regions with the highest GDP and the largest consumer market – such as the Southeast, South and, to a lesser extent, the Northeast – are those with the highest number of logistics operators operating in condominiums.

Exposed to more offers for spaces in logistics condominiums, the PSLs in the South and Southeast end up choosing to rent only part of the development, instead of becoming owners of it. In general, the preference is for modular sheds, and there is also a great option for bespoke sheds also installed in condominiums. With fewer options, logistics operators in the North and Midwest end up investing in the purchase of space, preferring warehouses made to measure for their operation.

Although industries installed in Brazil can influence the choice of location for their distribution centers, it is the PSLs that, most of the time, decide to take the operation to a logistics condominium. The increase in outsourcing of warehousing activity in Brazil is one of the explanations for this trend, as logistics operators are now also responsible not only for storing their customers' inputs and products, but also for seeking the most appropriate solutions to carry out the storage-related activities. Customers, on the other hand, are now limited to monitoring the levels of service provided and costs.

Therefore, naturally, logistics service providers are the main tenants of logistics condominiums. These PSLs have as their main customers companies in the Retail Trade, Electronics and Computer, and Hygiene, Cleaning and Cosmetics sectors. On the other hand, segments in which the storage activity is not so strategic, such as Steel and Metallurgy, Construction Material and Pulp and Paper, are not very representative in this type of enterprise.

Although the market believes that logistics condominiums are more advantageous for small and medium-sized companies, in general, large companies are the main customers of logistics operators using condominiums. Large companies are seeking to position their inventories close to the consumer market, in the region of influence of the condominium. Among the activities most carried out in condominiums are storage, cross-docking and cargo consolidation.

In general, these are operational factors that lead companies to opt for logistics condominiums instead of isolated warehouses. According to the logistics operators interviewed in the study published in Panorama ILOS “Condomínios Logísticos no Brasil”, the location of the condominium, the infrastructure offered by it and the greater asset security are among the most important points evaluated when choosing a project of this kind. LSPs looking for condominiums are mainly interested in modular warehouses in line with the project's standards, although they also opt, to a lesser extent, for areas built within condominiums, tailored to their operation.

Like the general average, PSLs in the Southeast, South and Northeast regions choose to operate in logistics condominiums due to their good location, physical infrastructure and greater asset security. In the North and Midwest, logistics operators choose condominiums because they are the best option in terms of cost, tax incentives and the infrastructure offered.

Although user companies admit that services are not critical factors when choosing a logistics condominium, some characteristics are more valued by those who install themselves in this type of enterprise. Among the most appreciated by PSLs are the driver support area, property security and the restaurant/canteen.

USER SATISFACTION LEVEL

This study also shows that the experience in logistics condominiums has been positive for its users, who attribute a general average score of 7,4 (on a scale of 0 to 10) to the developments available in Brazil. Usually accustomed to more complex operations and more demanding customers, users of logistics condominiums in the Southeast region are the most critical with regard to the quality of these projects, assigning a score of 7,3.

Although logistics condominiums offer many advantages, executives must be aware when choosing this solution. Among the problems cited by users in the study are the high rent and condominium fees, the undersized maneuvering yards and the difficulty in expanding the operation in the condominium.

Logistics service providers that do not use logistics condominiums also have reservations against this type of undertaking. According to them, the main disadvantage is the monthly expense, which is higher than in common warehouses. There are also great criticisms against the location of some condominiums, considered inadequate by half of the interviewees who do not use such developments. On the other hand, there is a group of logistics operators that do not operate in condominiums by decision of the client.

CONCLUSION

Despite the evolution recorded in the logistics condominium market in Brazil in recent years, there is still much to be explored in this segment. The expectation is that offers in the sector will continue to grow in the coming years, following the expected expansion in the use of condominiums by users. The tendency is for there to also be an improvement in the quality of services offered by condominiums in all regions of the country, in line with the increase in the level of demand of its users.

This opinion is shared by the logistics operators who use logistics condominiums, who intend to increase their participation in this type of enterprise in the coming years. This interest exists both on the part of those who already operate in a condominium, and by those who are still outside these areas.

However, these same operators believe that there is a shortage of condominiums in Brazil. Most of them (83%) complain about the lack of facilities available in some regions (mainly the Southeast), a situation that could be aggravated by the large number of companies that intend to expand their participation in these undertakings or start operating in them in the coming years.

BIBLIOGRAPHY

– Panorama ILOS “Logistics Condominiums in Brazil – 2013” ​​– ILOS