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Working with third-party logistics providers (3PLs)

October 30, 2019

In 2017, 3PLs leased 40% of the vacant warehouse space in the U.S. Their rapid growth has continued since—showing no signs of a slowdown anytime soon.

3PLs often make excellent, profitable tenants, but are in some important ways different to other businesses. For example:

  • When you consider their financials, remember that 3PLs typically have thin profit margins – sometimes as low as single digits.

  • Be patient. It is difficult for 3PLs to make quick commitments to leases or development negotiations because of ongoing RFP processes or the negotiation of services and operating agreements

  • It is typical for a 3PL to want a lease to be coterminous with an operating agreement, although some larger, well-established 3PLs look to create an anchor network in in U.S. cities and worldwide.










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