Working with third-party logistics providers (3PLs)
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.