The way we work is changing, and so are the spaces we work in. An emerging trend, particularly in the last few years, has been the rise in the use of flex space for businesses across an increasing number of industries.
If you’re new to my blog, here’s a quick rundown on what these spaces are. When I use the term flex space, I’m mainly talking about a steel construction building that has both an office and warehouse function. These spaces have a bay door for companies to operate out of, as well as an office that they can conduct their day-to-day business in — which, of course, customers can visit.
In addition to the flex space label, these buildings can also be referred to as office warehouses and small bay warehouses.
Today, we'll explore what flex space is, why it's becoming so popular, and what benefits it offers to both landlords and tenants.
The benefits of flex space for landlords
As the demand for flexible workspace continues to grow, landlords are finding that offering flex space can be a lucrative business model. One of the main advantages of flex space for landlords is that it allows them to maximize the use of their properties.
Instead of leasing a large office space to a single tenant, landlords can divide it into smaller units and lease them to multiple tenants, generating more income per square foot. Flex space also allows landlords to adapt to changing market conditions and tenant needs more quickly. For example, if there's a sudden surge in demand for meeting rooms, the landlord can repurpose some of the coworking space to create those rooms. Additionally, flex space can help landlords attract a wider range of tenants, from startups and freelancers to established businesses and corporations — this has been an enormous selling point in the last three years or so.
Benefits of flex space for tenants
Flex space is also beneficial for tenants, especially those who are looking for more flexible and affordable workspace options. Traditionally, businesses have had to sign long-term leases and commit to a fixed amount of space, which can be expensive and inherently inflexible. With flex space, there are far more options in choosing the size of the space, as well as the duration of leases. This allows businesses to scale up or down more easily, depending on their needs.
The future of flex space
The flex space market is expected to continue growing in the coming years, driven by the rise of remote work, the gig economy, and the need for more agile and cost-effective workspaces. This presents a significant opportunity for landlords and investors who are willing to embrace this new model of real estate. However, as the market becomes more crowded, landlords and operators will need to differentiate themselves by offering unique and high-quality spaces that meet the evolving needs of tenants.
It’s clear that flex space is not just a passing trend; it's a new way of working and doing business that is here to stay. Whether you're a landlord looking to diversify your portfolio or a tenant looking for more flexibility and convenience, flex space offers a range of benefits that are hard to ignore. As the market continues to evolve, we can expect to see more innovative and creative uses of flex space, from pop-up offices and mobile workspaces to niche coworking spaces tailored to specific industries or communities. The future of workspaces is flexible, and the possibilities are endless.
This is why I’ve gone all-in on flex space, and why I spend a great deal of time educating others on how to invest and grow their own flex space developments. If you made it to the end of this post and your interest has piqued, I would highly recommend checking out Flex Space Untapped. I’m sharing everything I’ve learned after years in this industry on how to streamline finding, building, and leasing your own developments with the absolute maximum ROI possible. I’ll see you there!
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