What are Flex Spaces in Industrial Real Estate?

Flex spaces, also known as flex buildings, are commercial properties that offer a blend of warehouse, industrial, and office space within a single facility.

They cater to businesses with diverse needs, allowing them to use the space for a combination of purposes such as manufacturing, storage, distribution, research, development, and office work.

Permissible Uses:

The permissible uses of flex spaces can vary based on local zoning regulations and the specific property. However, flex spaces are generally suitable for a range of activities including:

  1. Light Manufacturing: Assembly, production, and processing of goods on a smaller scale.

  2. Warehousing and Distribution: Storage and distribution of products and materials.

  3. Research and Development: Laboratories, testing facilities, and research spaces.

  4. Office Space: Administrative and managerial functions.

  5. Showroom: Display of products for clients or customers.

  6. Creative Studios: Design, photography, and multimedia production.

  7. Tech and Startup Spaces: Flexible layouts for growing businesses.

Door Configurations:

Flex spaces often feature a combination of different door configurations to accommodate various operational needs, such as:

  1. Loading Docks: For loading and unloading goods from trucks.

  2. Overhead Doors: Drive-in access for vehicles and equipment.

  3. Personnel Entry Doors: Separate entrances for office and industrial areas.

  4. Roll-Up Doors: Easy access for smaller vehicles and equipment.

Interior Features:

Flex spaces can include various interior features, depending on the needs of the occupant:

  1. Office Areas: Some flex spaces include dedicated office spaces, meeting rooms, and break areas to support administrative tasks.

  2. HVAC Systems: Many flex spaces have heating, ventilation, and air conditioning (HVAC) systems to create a comfortable working environment.

  3. Restrooms: Adequate restroom facilities are essential for both employees and visitors.

  4. Mezzanine Floors: Additional elevated platforms for storage or office space.

  5. Flexibility: Open layouts that allow tenants to customize the space to suit their specific needs.

Important Considerations:

When representing a client seeking to lease a flex space, here are some key factors to address:

  1. Size and Layout: Ensure the space is appropriate for the client's operations and future growth.

  2. Zoning and Permits: Verify that the intended use aligns with local zoning regulations and obtain necessary permits.

  3. Lease Terms: Negotiate lease terms that consider lease duration, rent escalation, maintenance responsibilities, and potential expansion options.

  4. Utilities and Services: Confirm the availability and cost of utilities such as electricity, water, and internet connectivity.

  5. Location: Evaluate the property's proximity to suppliers, customers, transportation hubs, and workforce.

  6. Accessibility: Consider transportation routes, parking availability, and ease of access for employees, customers, and delivery vehicles.