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Third Party warehousing providers ("3PLs") provide outsourced logistics and supply chain management solutions to clients seeking to increase flexibility while minimizing long-term storage & handling costs associated with labor and rent.
In many cases, the 3PL holds the warehouse lease and passes on its occupancy costs to the client. This can result in a "win-win" when a client has a short-term or seasonal need in a specific market. But for longer term requirements, we generally encourage clients seeking to get a better deal on their warehousing costs to consider holding the lease for a dedicated warehouse and, if appropriate, outsourcing the labor to a 3PL.
The main advantages to holding the lease are cost and control, but also include:
- No mark-up on the rent/increased cost visibility
- Ability to take advantage of tax & economic incentives
- Discretionary tenant allowance
- Free rent
Click here to download our FREE infographic using the link below to learn more about the advantages of holding the lease for a dedicated warehouse facility.
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