What is Flex Industrial Space? Benefits & Investment Potential What is Flex Industrial Space? Benefits & Investment Potential

Flex industrial space has become a commercial real estate market staple, providing exceptional flexibility for a diverse spectrum of organizations. But what is flex industrial space, exactly?

In this post, we’ll look at the distinguishing qualities of flex industrial spaces and why they’re an excellent investment prospect for both new and experienced real estate investors. In addition, we will show you how to find ideal industrial flex buildings.

Continue reading to find out why flexible industrial space might be an excellent addition to your real estate portfolio.

What is Flex Industrial Space?

Industrial flex space is commercial real estate combining office, retail, and warehouse space. This business property is usually a huge warehouse-style facility with a built-to-spec office and a shorter lease than regular offices. It’s convenient and easy to transform between purposes, making it a popular option among investors.

How is Flex Space Different from Other Real Estate Options?

There are elements differentiating flex industrial space from other counterparts, including:

How is Flex Space Different from Other Real Estate Options?


1. Agreement Terms Length

Industrial flex space for rent usually has a shorter lease term (7 months to 3 years, compared to 7–10 years for traditional office space). Real estate professionals even identify all options that are leased for less than 3 years as belonging to this category as well, whether they are typical office spaces or flexible spaces.

2. Co-working and Shared Spaces

Traditional office spaces are usually leased by a single company. Meanwhile, flex industrial real estate is shared and collectively rented by many companies. It’s a popular option for businesses relying on co-working or the internet for daily operations.

3. Shared Amenities

Flex spaces offer shared amenities such as free Wi-Fi, lounges, and coffee to all tenants, unlike traditional office spaces, which do not offer this feature. The amenities available depend on the type of flex property.

4. Lower Startup Costs

Traditional office spaces require significant investment in design, furniture, office devices, and wiring. On the other hand, an industrial flex building usually facilitates all of these and only requires an initial payment. They are a more affordable choice for businesses wishing to relocate into a new workspace because they only need the move-in of stock, equipment, and office essentials.

5. Multi-Functional Space

What is flex industrial space? It’s a multi-functional space. Traditional options can only serve one specific purpose. However, companies can turn flex spaces into offices, retail, warehouses, or research centers depending on business requirements with minimal modification.

6. Adjustment

Unlike typical offices, which are set up for particular purposes, flexible space may be adjusted to the changing needs of the business. It is suitable for office work, light manufacturing, distribution, and storage and can be modified according to the tenant’s requirements.

7. Key Location

A good flex industrial space is usually located close to urban areas, main roads, and transportation hubs. Thus, it’s appealing to companies that require quick access to partners, suppliers, and customers.

8. Scalability

What is flex industrial space, and what makes it different? The answer is its scalability. Flex spaces help businesses quickly react to market expansion or changes without significant modifications or relocations. Their scalability gives companies more freedom to change according to operation, making them a cost-effective option.

9. Affordable leases

Compared to standard office facilities, flex industrial space for rent is usually less expensive. Additionally, short-term leases are an excellent choice for newly established or rapidly expanding firms. Shorter leases enable businesses to move more easily and faster when relocating or expanding their location.

10. High ceilings

Flex spaces, frequently converted into warehouses, have high ceilings that allow lots of storage and a spacious workspace. Because sound may travel farther with high ceilings, there is less echo, and the workspace appears quieter than in a closed, tight office.

11. Easy access

A specific space rather than a loading dock for customers to enter your offices might improve their perception of your company and brand. Since clients are allowed to view the entire process in one place, this approach boosts their organic and authentic feelings.

4 Big Reasons Investors Should Invest in Flex Space

What is flex industrial space? Now you know what type of real estate it is. Investing in flex space industrial real estate is a stable and valuable way to make a profit. It’s because the option has:

4 Big Reasons Investors Should Invest in Flex Space

Strong Rental Demand

Due to the expansion of e-commerce and the requirement for effective supply chain networks, there is an increased demand for flex industrial buildings. As a result, these facilities are being leased with higher rental rates, giving real estate investors a profitable chance to invest.

Portfolio Diversification

Both novices and seasoned investors understand the importance of diversification in the commercial real estate industry. Including flex industrial properties in their portfolios can help investors lower risk and protect themselves from future downturns in other investments.

Attractive ROI

Due to their limited supply and strong demand, flex industrial buildings have excellent returns on investment. Because of their versatility, which allows investors to renovate and repurpose them, the rental rates of flex space are frequently higher. Thus, flex industrial real estate has higher value and potential for appreciation.

Long-term Stability Potential

Commercial real estate sectors are more susceptible to economic fluctuations. However, industrial flex space is less affected due to its resilience and relatively consistent demand. Therefore, it’s a safe and secure investment option for investors.

8 Ways to Seek Flex Space For Sale/For Lease

There are effective ways to look for the industrial flex space that meets your investment requirements, including:

8 Ways to Seeking Flex Space For Sale/For Lease

1. Online Real Estate Platforms

Online commercial real estate platforms usually give property owners or brokers access to extensive details, pictures, and contact information. Investors can easily find flexible space in the desired area.

2. Agents and Brokers

What is flex industrial space? Many agents and brokers are also dealing with this property type. If you want to invest, consult with top industrial real estate brokers and agents who have detailed information on the market and can assist you in locating flexible space that meets your needs.

3. Networking and Referrals

Great chances can frequently arise from referrals. Contact coworkers, the business community, or other entrepreneurs you know, and they may provide information on flexible space choices that are for sale or lease in your area.

4. Industry Associations and Trade Shows

Attend conferences, trade exhibitions, or other events targeted at the commercial real estate market to establish connections with businesses or individuals. They might be able to provide you with insider knowledge and instruct you on how to find a good industrial flex building.

5. Local Newspapers and Magazines

An old but gold method is reading local newspapers and magazines’ classified advertising or real estate sections. They can be a good source for finding a suitable option.

6. Exploring Neighborhoods

Once you know your target location, drive or walk around. Since some property owners might not actively post their flex space online, look for signs that say “For Sale” or “For Lease.”

7. Social Media Groups and Forums

Internet forums and social media groups can offer insightful information, suggestions, and connections to people or businesses with flexible space for sale or lease.

8. Economic Development Agencies

To find out about upcoming or available flexible space in your area, get in touch with the local economic development agencies. They frequently have information about open buildings.

Find Your Flex Industrial Space with Savills!

In summary, what is flex industrial space? It represents a versatile type of commercial real estate that blends the features of traditional office and industrial buildings, offering businesses unmatched flexibility. Investing in such properties can yield significant benefits, making it a wise choice for discerning investors.

For those looking to make a safe and profitable investment, contact Savills Industrial today. We are here to help you find the ideal property to meet your specific needs.