The landscape of Brazilian logistics is shifting outward. XP Log (XPLG11), a prominent real estate investment trust focused on industrial and logistics assets, recently finalized a R$ 919 million acquisition of six warehouses, deepening its commitment to the so-called "Radius 60" — the industrial belt within roughly 60 kilometers of the São Paulo capital. The deal includes assets in Jundiaí, Jarinu, and Atibaia, municipalities that have steadily evolved from peripheral towns into critical nodes for consumer goods, automotive, and food supply chains.

The transaction also encompasses a follow-on investment in Piracicaba, where the fund is financing the expansion of a logistics park already 75% pre-leased. Taken together, the moves amount to a clear strategic thesis: that the next generation of high-grade logistics infrastructure in Brazil will not be built inside the capital, but along the highway corridors radiating from it.

The economics of the perimeter

The logic behind the Radius 60 strategy is not new, but it is accelerating. São Paulo's metropolitan core has long suffered from constrained land supply, high occupancy costs, and chronic road congestion — conditions that push industrial tenants toward locations that offer comparable market access at lower friction. Jundiaí, situated along the Anhanguera and Bandeirantes highway corridors, has become one of the most sought-after logistics addresses in the country, with vacancy rates that reflect persistent demand outstripping available stock. Jarinu and Atibaia, connected via the Dom Pedro I and Fernão Dias highways, occupy a similar position: close enough to the capital's consumer basin to enable same-day delivery operations, far enough to offer viable land parcels for modern, large-footprint warehouses.

This pattern mirrors dynamics observed in other major metropolitan economies. The outward migration of logistics infrastructure from city centers to highway-connected peripheries has reshaped industrial real estate markets from the Inland Empire east of Los Angeles to the corridors surrounding Shanghai. In each case, the catalyst is the same: e-commerce growth and just-in-time supply chain demands require facilities that combine scale, modern specifications, and rapid highway access — a combination that dense urban cores struggle to provide.

For XP Log, the bet is that the São Paulo interior offers a durable supply-demand imbalance. The regions targeted in this acquisition benefit from established infrastructure, a deep labor pool drawn from mid-sized cities, and proximity to both the Port of Santos and Viracopos International Airport in Campinas, two of the country's principal freight gateways.

Pre-leasing and the question of saturation

The Piracicaba component of the deal introduces a different dimension. Located further from the capital — roughly 160 kilometers northwest — Piracicaba sits outside the traditional Radius 60 definition, suggesting that XP Log's perimeter thesis may already be extending beyond its original boundaries. The fact that the logistics park there is 75% pre-leased before expansion is complete indicates tenant demand is pulling capital into secondary interior markets, not just the established Jundiaí-Campinas axis.

This raises a question that the broader Brazilian industrial real estate sector will need to answer in the coming years. As institutional capital concentrates in the São Paulo interior, the premium locations along the Bandeirantes and Anhanguera corridors may begin to exhibit the same cost pressures that drove tenants out of the capital in the first place. If vacancy rates remain compressed and land values continue to climb, the competitive advantage of the Radius 60 narrows — and the next ring of expansion moves further out.

The R$ 919 million transaction positions XP Log as one of the most aggressive institutional buyers in the segment. Whether the fund is capturing a structural shift in Brazilian logistics geography or arriving at the late stages of a pricing cycle in the São Paulo interior depends on variables that remain in tension: the pace of e-commerce penetration, the trajectory of infrastructure investment in secondary cities, and the willingness of industrial tenants to accept longer distances from the capital in exchange for lower costs. The deal is a bet that the perimeter holds. The market will test how far that perimeter can stretch.

With reporting from Metro Quadrado.

Source · Metro Quadrado