What Is a Flex Property Type in Commercial Real Estate?
Understand "flex property" in commercial real estate. Explore how these versatile spaces blend office and industrial uses for diverse business needs.
A flex property type in commercial real estate is known for its adaptability. These versatile commercial spaces accommodate diverse business operations within a single structure, offering a unique solution for varied tenant needs.
Defining Flex Properties
A flex property combines characteristics of both office and industrial or warehouse spaces. This hybrid design supports a wide range of business functions, from administrative tasks to light manufacturing or storage. Its versatility gives it the “flex” designation, providing adaptable environments.
The proportion of office to industrial or warehouse space within a flex property varies significantly, contributing to its flexibility. Some properties might lean towards office use with a smaller storage component, while others prioritize industrial capabilities with a modest office area. This blend is valuable for businesses seeking cost-effectiveness and operational efficiency. Consolidating operations into one location can reduce real estate expenses compared to leasing separate properties, streamlining logistics and improving coordination.
Key Architectural Elements
Flex properties are characterized by physical and structural features enabling versatile use. Typically, these are single-story layouts providing direct access and an adaptable floor plan. This design often means fewer windows compared to multi-story office buildings, but it simplifies movement within the space.
The office component features finished interiors, including restrooms and areas for reception or administrative work. The industrial or warehouse section is designed for operational needs, often with high ceilings allowing for vertical storage or specialized equipment. This area commonly includes roll-up or drive-in doors and loading docks to facilitate material movement. Robust utility infrastructure, such as higher power capacity, is often present. Adequate parking facilities are also common, accommodating both office staff and operational vehicle needs.
Common Business Applications
Flex properties are utilized by diverse businesses due to their adaptable design. Light manufacturing companies find these spaces suitable, providing production areas and administrative offices within the same facility, allowing for seamless integration of processes.
Research and development (R&D) firms lease flex spaces for laboratories or prototyping areas alongside their offices. Businesses operating as showrooms or retail outlets use flex properties to display products and for on-site inventory storage. Distribution and logistics companies benefit from combining warehouse space for inventory management and office areas for administrative tasks. Service-oriented businesses, such as contractors or repair services, use them for equipment storage, vehicle parking, and an office presence.