LPA's Fully Pre-Leased Building 400 in Peru: A Model of Capital-Efficient Growth in Latin American Logistics Real Estate

Logistic Properties of the Americas (LPA) has emerged as a standout performer in the surging Latin American logistics real estate sector, with its fully pre-leased Building 400 at Parque Logístico Lima Sur in Peru serving as a textbook example of capital-efficient growth. The 71,580-square-foot facility, leased to a long-standing regional tenant-one of the world's leading logistics providers-has already contributed to LPA's first-quarter 2025 financial results, which saw revenue rise 12.9% year-over-year to $11.8 million, driven in part by the building's stabilization. This case study underscores how disciplined execution, strategic location, and high-quality tenant profiles can create outsized returns in high-barrier markets.

Strategic Advantages of High-Barrier Markets

Peru's logistics real estate market is characterized by structural supply constraints, making it a prime example of a high-barrier environment. As of September 30, 2025, LPA reported a 97.9% stabilized occupancy rate for its portfolio, with Parque Logístico Lima Sur playing a pivotal role in this success. The facility's location near the Port of Callao and Jorge Chávez International Airport provides unparalleled connectivity, a critical factor for tenants seeking to optimize supply chains in a region with growing e-commerce demand and industrialization. According to Business Wire, LPA plans to expand its footprint in the Peruvian market with a new 215,300-square-foot facility at Parque Logístico Callao.

High-barrier markets like Lima are further defined by fragmented land ownership and limited availability of premium logistics infrastructure, creating a competitive moat for developers like LPA. The company's CEO has emphasized that such constraints "reinforce our unique positioning," as competitors struggle to replicate the scale and connectivity of LPA's assets. This dynamic is particularly relevant in Latin America, where urbanization and trade growth are driving demand for institutional-grade logistics facilities at a faster pace than new supply can be developed.

Financial Performance and Tenant Quality

The pre-lease model employed by LPA at Building 400 exemplifies a risk-mitigated approach to development. By securing long-term tenants before construction is complete, LPA ensures predictable cash flows and reduces exposure to market volatility. The recent lease at Building 400 was signed with a tenant that has maintained a relationship with LPA for years, underscoring the company's ability to retain high-quality occupants in a competitive landscape. According to the first-quarter 2025 earnings report, Peru's logistics assets were instrumental in stabilizing LPA's revenue stream.

This strategy is paying dividends. Meanwhile, the company's simultaneous development of Building 200 at Parque Logístico Callao-another 227,172-square-foot facility with over 70% pre-leased occupancy-demonstrates a scalable playbook. Notably, this new building is pre-leased to Peru's largest consumer products company and pharmacy chain, further diversifying LPA's tenant base and reinforcing its financial resilience. According to the earnings report, this new facility is part of LPA's strategic expansion in Peru.

Infrastructure as a Competitive Edge

LPA's success in Peru is also rooted in its focus on infrastructure that meets the evolving needs of modern logistics. The Parque Logístico Lima Sur and Callao facilities are designed with features such as high-clearance docks, advanced security systems, and energy-efficient layouts-attributes that command premium rents in a market where demand for such infrastructure far outstrips supply. According to Business Wire, LPA plans to expand its footprint in the Peruvian market with a new 215,300-square-foot facility at Parque Logístico Callao.

This emphasis on quality aligns with broader trends in Latin America, where e-commerce growth and just-in-time inventory systems are reshaping supply chains. According to a report by BeyondSPX, LPA is capitalizing on this "logistics boom" by targeting markets with strong domestic consumption and underdeveloped infrastructure, positioning itself to capture long-term value as these economies mature.

Conclusion: A Blueprint for Long-Term Value

LPA's Building 400 in Peru is more than a single asset-it is a microcosm of the company's broader strategy to leverage high-barrier markets through pre-leased developments, strategic location selection, and tenant retention. The combination of these factors has enabled LPA to achieve a stabilized occupancy rate of 97.9% and deliver consistent revenue growth, even in a macroeconomic environment marked by inflationary pressures and interest rate uncertainty. As of September 30, 2025, LPA reported a 97.9% stabilized occupancy rate for its portfolio.

For investors, the case of Building 400 illustrates the power of disciplined execution in a sector where supply constraints and demand tailwinds create fertile ground for capital-efficient growth. As Latin America's logistics real estate market continues to evolve, LPA's playbook-anchored in pre-leases, infrastructure innovation, and strategic market selection-positions it as a compelling long-term investment.