Outlook for Brazil logistic-industrial, corporate projects remains firm: Cushman exec

There should be a steady stream of high-standard logistics, industrial, and office projects built in Brazil in 2026, according to Matheus Cardoso, the South America CEO and president of global real estate giant Cushman & Wakefield, and this increased activity should likewise sustain demand for rebar in the country.

According to the Brazilian steel institute Aço Brasil, a group of the main Brazilian steelmakers, the construction sector accounted for 37.3% of steel consumption in 2024, followed by the automotive sector at 24.8% and the machinery and equipment sector at 19.2%. Data for 2025 has not yet been consolidated.

"The country went through a year of discipline in 2025, with a more specific selection of which projects and segments would be reserved, while 2026 will be the year of execution for this entire pipeline," Cardoso told S&P Global Energy. At the beginning of 2025, he added, the forecast for logistics-industrial and corporate real estate development in Brazil was lackluster.But this did not materialize; instead, it gave way to a very resilient real estate sector, especially in the construction of logistics centers that deliver e-commerce to large urban centers, mainly in the Southeast, Cardoso said.

Potential downward pressure on demand for rebar in Brazil, the most widely used steel in civil construction, also did not materialize in 2025, and negotiations proved resilient, especially in the second half of the year. Platts assessed weekly prices for Brazilian domestic rebar Feb. 6 at Real 3,400/metric ton ($651.34/mt) EXW, stable on the week and trading within a range of Real 3,300-3,500/mt, excluding taxes, from offers, bids and deals.

Another segment that advanced in 2025 and is expected to sustain demand this year was the search for more modern, efficient, and high-standard corporate offices.

"Since the end of the pandemic, there has been a concern that offices should be more focused on user experience, and this remains strong, impacting all phases of construction, from the chosen location to how retrofit projects are being handled," said Cardoso, who also leads Cushman & Wakefield's operations in Argentina, Chile, Colombia, Peru and Uruguay.

Locations

Santa Catarina state in Brazil's Southeast was reported by Cardoso as a thriving logistics hub that has been developing recently due to its proximity to ports such as São Francisco do Sul and Itajaí. Something similar is also happening in the Northeast, but the Southeast remains the leader. Furthermore, the tax reform that began this year in the country is on the sector's agenda and may change the dynamics of choosing states for large logistics projects, as decisions previously based on tax benefits are likely to change, giving way to efficiency analyses.

According to Cardoso, the issue of high interest rates in Brazil still puts pressure on construction project selection, weakening those without a moresolid foundation, but never hindering overall demand.

"If the interest rate curve in Brazil is more favorable this year, which is still very uncertain, as well as the effects of this on credit granted, this could accelerate the market; until then, we will continue to see this selectivity," he said.

Cushman & Wakefield also sees São Paulo on the list of the 10 Latin American cities with a consolidated data center market, while Santiago, Chile, appears as an emerging market, and Bogotá, Colombia, as an option for the future. Mexico has room for growth in specific regions, but Brazil stands out for its hydroelectric and water resources.

"The key point is when to invest, as the chosen location is very important," Cardoso said. "There are global mappings on this, and because it's a very long-term project, great care and assertiveness are needed, in addition to the issues of energy, licensing, water, and space, which are essential for the evolution of the data center over time."