Building modular warehouses a growing trend - specialist

Renting modular storage facilities in logistics complexes is a growing trend as it can help logistics companies ride out tough times like Brazil's current economic crisis, according to Fernando Terra, the director of Latin American industrial and logistics services at global real estate firm CBRE.

Besides being modular, which gives companies flexibility in terms of future growth, the clear height of a firm's storage facility is a key factor right now, Terra told BNamericas.

"Logistics firms which rent per square meter can cut costs by leaving older, 8m-high facilities and opting for those with higher stacking ability," said the executive, adding that renting also eliminates the risks and costs associated with building their own warehouses.

Although Latin America's two largest markets, Mexico and Brazil, are quite well served in terms of logistics complexes, said Terra, the metropolitan region of Colombian capital Bogotá and regions near large cities in Argentina and Chile could use more warehousing infrastructure.

In Brazil, there is also a lack of warehousing space in port areas and logistics complexes that act as free trade zones. Operating cold-storage facilities could also be an opportunity, he added.

CBRE manages logistics complexes with modular warehousing facilities ranging from 1,000m2 to 100,000m2 and with clear heights of up to 12m. Its clients include US-based real estate providers ProLogis and Hines, and Singapore-based Global Logistics Properties (GLP).