Welcome to this episode of The New Warehouse Podcast, where Kevin chats with Summitt Hogue, Managing Partner at Growe 3PL Real Estate. Hogue has built his firm around one clear mission: helping mid-market, growth-minded 3PLs make smarter real estate decisions that directly support expansion. In this conversation, he breaks down why traditional brokerage models fail 3PL operators, how today’s market conditions have created rare opportunities, and what leaders should be doing now to position themselves for 2026.
Why 3PL Real Estate Demands a Partnership Mindset
Many 3PLs struggle with real estate because they treat it as a transaction rather than a long-term partner. Hogue explains that Growe serves operators whom large brokerage firms often overlook. “Those are really our sweet spot because our business has been built on providing just an immense level of value to those guys. ’Cause we wanna be way more than just a real estate guy.”
Instead of focusing on one-off deals, Growe embeds itself in a client’s business. That means understanding operations, growth plans, and even customer acquisition. “That’s just not a partnership, right? Like that’s just a vendor… and that is not what we do.” By staying close to the operation, Growe can anticipate space needs before they become urgent.
Hogue describes the role as something far broader than brokerage. “We sort of feel like your chief growth officer that you never have to pay.” For 3PL leaders, that mindset shift reframes real estate as a growth lever rather than a fixed cost.
Operational Mistakes That Quietly Kill Margins
Beyond real estate, Hogue sees recurring operational mistakes that derail fulfillment-focused 3PLs. One of the most common involves shipping billing cycles. “You just became a factoring company for this brand, and you gotta pay your bills.” Monthly billing exposes operators to major cash-flow risk when carriers demand immediate payment.
His advice is blunt and practical. “You cannot do it monthly. You gotta bill the customer and make them pay you so you can pay UPS and FedEx.” Some operators bill daily or weekly to reduce exposure and protect cash flow.
Labor and pricing models are another pressure point. “Every single shipper, every single brand, and their operation is so different.” Rate cards often ignore SKU velocity, order profiles, and labor intensity. When operators fail to engineer pricing correctly, volume can increase while profits disappear.
The 3PL Real Estate Window Operators Can’t Ignore
According to Hogue, the current 3PL real estate market is unlike anything he has seen before. “2025 is gonna go down in the record books for us as just some of the wildest deals that we’ve ever gotten done.” Oversupply, high interest rates, and cautious demand have put landlords on their heels.
Hogue shares an example where a client secured 20 months of free rent on a 10-year lease at historically low rates. “There’s a ton of empty space. It’s all over the place.” That imbalance has created leverage for tenants willing to act.
The opportunity, however, is temporary. “Now is the time to sign a long-term lease.” Hogue believes absorption will increase in 2026, shifting power back to landlords. Operators who lock in space now may enjoy years of cost advantage while competitors face rising rents.
Key Takeaways
- Treat 3PL real estate as a growth strategy, not a transactional expense.
- Monthly shipping billing can turn operators into unpaid lenders overnight.
- Poorly engineered pricing models can drive volume while destroying margins.
- 2025–early 2026 represents a rare tenant-favorable real estate window
- Long-term leases with flexibility and free rent can create lasting cost advantages.
