If you want to rent a small warehouse in Brazil, you can read this article. This article will give you information about the costs of renting a warehouse in Brazil, the qualifications you need to rent a warehouse in Brazil, and the inflation history of the Brazilian warehouse rental market. After reading the article, you should be able to choose the best warehouse rental in Brazil. It will help you decide if renting a small warehouse in Brazil is a good choice for your company.
Costs of warehouse rental in Brazil
The growth of e-commerce in Latin America has driven record warehousing space demand in recent years. In addition, a COVID-19 pandemic has led to over 50 million Latin Americans purchasing goods online, further increasing demand for retail warehousing space. Brazil is the largest warehousing market in the region, representing half of the country’s industrial market share. The second-largest market is Mexico, while Chile and Colombia round out the top five. The industrial market in Brazil is currently booming, with most of the industrial investment taking place in the Sao Paulo metropolitan area.
Depending on where you rent a warehouse, you have three main options for your rental: a private property from the owner, a company or an agency that handles the process for you, and an unfurnished short-term option. Private rentals are generally more flexible, but often require a guarantor or a large deposit. A private rental is typically a better choice if you are unsure of the local market and/or are new to the country.
When renting a warehouse, you’ll have to pay a percentage of the IPTU, known as Net-Net-Net, along with the actual rental payment. Most properties will list IPTU monthly payments alongside the actual rental payments. You can decide to split the payment with the landlord or pay a percentage of the IPTU monthly to him. If you’re jointly-owned, you’ll have to pay an electricity bill as well, which typically comes out to around $2 per square foot.
Qualifications required to rent a warehouse in Brazil
If you are interested in renting a small warehouse in Brazil, there are a few things you need to know. The standard rental contract in Brazil is for 30 months. But you can also opt for a 12-month lease in coastal towns, where many expatriates rent their properties for only part of the year. In either case, the contract will be written as a standard 30-month one, with a clause to end after 12 months.
For a short-term rental, you will need to show proof of the CPF, or Brazilian Identity Card. While obtaining this document is easy enough, it can take months to obtain. If you do not have the CPF, you will need to look for short-term accommodations, whereas long-term leases will require a fiador or a strong work history. Listed below are the qualifications you need to rent a small warehouse in Brazil.
Be prepared to pay a high price for the lease. Rentals in Brazil are notorious for being unfurnished, and a large part of the rental price is devoted to notary fees and property taxes. Make sure to negotiate these before signing the contract. You can ask your agent or landlord to translate the contract for you. If you cannot speak Portuguese, you will want to have the contract translated by a professional or have a co-worker translate it for you. You may also need to have the contract notarized, and a foreign notary is not acceptable in Brazil.
Inflationary history of Brazil’s warehouse rental market
In Brazil’s small warehouse rental market, rents are indexed to inflation, making them an excellent tool for making capital budget decisions. During the early industrial expansion, land was cheap, and larger companies had a strong incentive to build factories outside the city centers. Then, the government created the development bank to support these businesses. These areas subsequently became part of the urban core, boosting the value of their properties.
In the first three years after the end of the second World War, inflation was still at a low rate. Then, in the third quarter of 2021, foreign and domestic supply chains normalized, and consumer demand began to revert to a more normal pace. As a result, the economy experienced a mild recession, with real GDP declining by 1.5 percent. However, it is worth noting that the country’s economy did not suffer from this recession, as it had experienced several years of inflationary episodes.