Beatris' post announced on 12/02/2016 the current advantages in costs and flexibility when choosing logistics condominiums as a storage solution. A phenomenon that emerged in the 90s in Brazil, driven largely by road transport bottlenecks in large capitals, these condominiums have gained great importance in the national economic scenario. According to real estate consultancy Necklaces, the country closed 2015 with around 10,8 million m² of class A condominiums (areas with height, floor, security, temperature, etc. restrictions), maintaining an annual growth of more than 10% in the last 3 years.
Figure 1 - Evolution of existing inventory, net absorption and vacancy rate by year
Source: Colliers
This growth, even in a troubled moment of the economy, happens due to some reasons. First, the location of these installations is usually privileged: close to large centers of consumption and production and on the margins of highways, railways, ports and/or airports with large circulation. Second, the flexibility and convenience offered are differentiated. Modular sheds adapted to the warehouse size needs of each company can be negotiated with the condominium operator, in addition to additional services such as tire shops, workshops, convenience stores, accommodation, security and even restaurants. And third, the ease of attracting skilled labor to carry out the routine activities of a warehouse is greater. Since it is a cluster logistics, the knowledge acquired by the local workforce is easily shared between the companies that are part of the condominium.
Given the success of the logistics condominium logic, it was inevitable that the idea would expand. There was soon a fusion with the logic of the production centers, forming industrial condominiums: areas with the same modular warehouses existing in logistics condominiums, but this time some also pre-molded for the installation of production plants, in the “Plug & Play” style. Why not keep your production adjacent to your DC, close to large consumption centers and with all the advantages that condominiums offer? The idea was very well received by executives, mainly in the consumer goods sector, who frequently use this type of area through their logistics operators.
It turns out that this expansion does not seem to end. The novelty of the moment are the business condominiums: areas prepared not only for logistical and industrial installations, but also for commercial offices, residential areas and even leisure areas. They are true mini cities, with all the necessary infrastructure to manage the activities of a company in the same place. Industrial and corporate workers living a few blocks from their jobs and enjoying facilities such as shopping malls, restaurants and cinemas. All in the same space.
But there are also disadvantages to using this type of establishment. As in any residential condominium, the fixed costs necessary for operating the common areas are shared among all users. At a time of heated economy and high demand, these costs tend to be the decoy for the company to enter the business, since the denominator of the division tends to be higher. But in the event of a change in the economic outlook and users fleeing condominiums, the rise in costs can be abrupt and weigh heavily on the company's cash. It is important to be aware of business risks!
