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If you’ve been around the commercial real estate world for any period of time, you’ve likely heard the term “flex property” or “flex space.” But what does that mean? For some business owners, purchasing or leasing commercial office space can be challenging, especially if their business is in an industry where it makes sense to have an office or a retail space along with a warehouse or manufacturing building. If this is the case for you, read on to find out if flex property can meet all of your needs.
Flex building, or flexible, property is commercial real estate that has a warehouse and an office or retail space all in one. Instead of having to lease or purchase two different properties, a buyer can have everything they need in one space. The typical layout for a flex property is an office space or retail area in the front of the building with storage space or warehouse space in the back. These types of properties can be stand-alone buildings or they may be part of a connected industrial space complex.
Flex properties continue to grow in popularity, mostly due to their versatility. Many different industries work well in flex spaces, including manufacturing, research and development, e-commerce, construction and distribution. Some companies use flex properties as retail space and have all of their extra products stored in the warehouse space in the back. Others use them primarily for manufacturing space with a small office area in the front, including customer-facing employees who greet clients or where management has their headquarters.
Many small businesses prefer flex properties because they don’t have to have any disconnect between warehouse or manufacturing space and where they perform day-to-day business. For example, a company that produces clothing can use the office space of a flex property to create designs and then manufacture or store the finished clothing products within the same building.
A long-term commercial lease is a strategic arrangement that offers stability and security to both landlords and tenants. These leases typically extend over an extended period, often ranging from several years to decades. Such agreements allow businesses to establish a long-lasting presence in a location while providing property owners with a reliable income stream. Long-term leases also offer the opportunity for tenants to customize and improve the space to meet their specific needs, fostering a sense of ownership and commitment.
Additionally, in the context of long-term commercial leases, flex space offers properties have gained prominence. Flex properties are versatile spaces that can adapt to various business needs, making them particularly attractive for long-term lease agreements. They offer the flexibility to accommodate different business models and evolving flexible space requirements. This flexibility allows tenants to optimize their space utilization over the lease’s extended duration, ensuring the property remains a valuable asset throughout the lease term. Long-term leases, particularly in flex properties, are an essential tool for businesses looking to build a strong and lasting foothold in their chosen markets while maintaining adaptability in the ever-changing business landscape.
There are several differences that set flex properties apart from other, more traditional commercial real estate. In addition to having all aspects of business operations under one roof, there are other benefits:
Traditional office spaces typically have lease terms that last from five to 10 years. In most cases, the lease agreements for flex properties are shorter, from a few months to a few years, depending on the property owner.
Many flex spaces allow tenants within the same building to share amenities, which may include Wi-Fi, lounge areas or employee workrooms.
Flex properties may be leased by more than one company, allowing for the sharing of warehouse or office space. This is unlike more traditional commercial real estate, which is almost always leased exclusively to one business.
Leasing or purchasing an office space can be an expensive undertaking, especially for start up businesses. Flex spaces often require a much smaller investment up front, making them a great option for new businesses.
Does a flex property sound like a good fit for your company? Consider the following additional benefits:
While this commercial real estate setup is not ideal for every company or for every industry, it is a great option for many who want to save costs and streamline operations.
If you think your business could benefit from a flex space, contact Chris Falk today. He’ll help you find a property in Weber, Davis or Salt Lake County that is the perfect fit for your needs.
Chris Falk is a Certified Commercial Investment Member (CCIM)—one of the most comprehensive commercial real estate designations, held by an estimated 6% of commercial brokers nationally. As a commercial real estate broker, Chris has handled over 600 transactions exceeding $475MM. Born and raised in Utah, Chris understands the unique qualities of the region and the great capacity for business opportunities in Northern Utah, including Davis, Weber and Salt Lake Counties. Chris is the premier, go-to agent for businesses and developers interested in this dynamic area.
