The flex space is nothing new in commercial real estate. In today’s world of co-working concepts and flexible workdays, it’s gained in popularity. But what exactly is a flex space — and what are your options if you plan to work out of (or purchase) one? We’re glad you asked. Read on for an overview of Belvoir’s real estate pros.
What is a Flex Space?
“Flex space” traditionally refers to a large, warehouse-style structure. A space that can be customized to suit retail, office, and warehouse needs. (Often all at once!) The building’s flexible nature and open floorplan make it easy to build out leased space to meet a tenant’s unique needs and aesthetics. It makes it easy to update, should the tenant move out or see the need to expand. There is no rule against a single lessee occupying a full flex space. However, such buildings generally house many businesses at any given time.
What to Consider When Selecting a Flex Space
The very nature of a flex space means your opportunities are virtually endless. The key is to find the space (and rental agreement) that makes the most sense for your business. Here are some things to keep in mind:
Location
As with any space you rent or purchase, you’ll want to make sure it sits in a spot you can work with. Are team members and (if applicable) customers able to reach it easily? Does it sit along well-traveled routes to ensure easier deliveries? Does it already house businesses you work with on a regular basis? (Talk about convenience!) There are few things as frustrating and costly as opening your doors in a location that doesn’t serve your situation well.
End Use
Flex spaces are incredibly versatile, but there are limitations to any property. In addition to working with your aesthetic and budget, your space should have the features to operate successfully. Are big shipments a regular part of your day-to-day business? You might want to look into a space that offers dock high loading. Will you meet regularly with clients on-site? A comfortable conference room might be necessary. Do you plan to host functions often? Be sure to make sure you have an adequate parking situation.
Future Growth
One of the things that makes a flex space great is its ability to change shape and size to suit one’s needs. Those growth opportunities can go straight out the window, if your building is fully leased or if you’re in an area boxed in by other tenants. If you anticipate needing more space within the next two years or so, you’ll want to make that known to your real estate agent. They can help you find a location that can serve you well for years to come.
Lease Terms
If you’re planning to rent your flex space, rather than purchase the building, you’ll want to make sure the terms fit with your business plans and budget. Consider how long you plan to be in the space. Longer-term leases can result in cost savings but can leave you strapped into a contract if you make an early exit. Likewise, square footage needs to come into play. A smaller space might make sense at the start. But what if you find yourself needing more elbow room before the lease is up? Some rental agreements allow for wiggle room in the event that an expansion is needed. Your commercial real estate broker will guide you through the process and help you settle on terms that make sense.
Is a Flex Space Right for Me?
Flex spaces provide countless benefits. From their ability to foster employee interaction and shared resources, to the ease at which they can be customized. Still, they aren’t for everybody. The best way to determine whether a flex space is the right option for your business is to talk with a trusted real estate professional. They can help you gauge your needs, wants, and budget — and get you headed in the right direction.
If you have questions about flex spaces or any other aspect of commercial real estate, contact Belvoir! Our team understands the ins and outs of finding that just-right property, and we’re glad to help.
