As the world evolves, the needs of employees change. As an employer, navigating these changing needs and providing the proper workspace to accommodate them will make you more successful in the long run. The right space can also help solve many problems you may encounter as a growing business.
Flex space is becoming more popular, especially for companies that need their warehouse and office operations located together. Learn more about flex space below, including its benefits and why you should invest in flex space for your business.
What Is Flex Space in Commercial Real Estate?
Flex space refers to industrial office space businesses can use for multiple purposes. As the name implies, the property is flexible and serves numerous functions. Companies typically use flex space for warehouses and office space, allowing them to perform multiple business functions out of the same building.
Flex spaces come in various sizes, allowing them to accommodate all types of businesses and operations. These rentable hybrid offices feature restrooms, offices and warehouse space so your operations can all run out of the same area. Many of these spaces also come with loading docks with high ceilings, allowing large operations to function out of these spaces. Businesses looking for a versatile option to house their operations should consider flex space.
Why Flex Space Is So Popular
Flex space is gaining traction among commercial businesses due to its adaptability. As more people shift to online buying, companies are looking to change their strategies to attract online buyers. These businesses can invest in flex space to store their products for distribution and provide nearby office space. Flex spaces allow commercial companies to adapt the real estate to their needs, whether adding by workspace or creating more distribution centers for their products.
Flex space is also popular with companies that are experiencing rapid growth. This type of commercial real estate allows businesses to modify the area as they grow, and shorter leases make it easy to move if they outgrow their current location. Various types of companies are utilizing flex space, including those involved in:
- Medical research and pharmaceuticals: These companies often need ample space for labs and offices to accommodate their needs. They also need space for storage or retail, all of which flex space can handle.
- Research and development: Like medical and pharmaceutical companies, research and development teams also need a lab and office space. If their research leads to product development, these teams will also need space to manufacture their goods. Flex space allows these teams to complete their work in one location.
- Retail and logistics: These companies often need office and warehouse space to store goods and handle day-to-day operational tasks. Flex space can accommodate all of these needs and more.
- Startups and growing businesses: Businesses can easily expand using flex spaces, utilizing more space as they grow. They can also start by using only the space they need at a more affordable cost than traditional office spaces.
- Technology and data centers: The demand for data centers continues to grow as the internet expands. Data centers can serve one business or several and often span thousands of square feet. Flex spaces are ideal for these centers because they can accommodate the size requirements.
- Manufacturing: Many businesses need to manufacture goods to deliver to their consumers. Flex spaces allow for these businesses to produce their products and complete office work in one convenient location.
Flex space is incredibly versatile and can house numerous types of businesses. These spaces are more than just an open floor plan — they often have movable walls, open spaces and other features that let you customize the property to your needs. Flex space is designed for more than just a single purpose, making it ideal for many businesses starting to branch out.
This property type allows you to handle all your business operations under one roof. Housing your operations in separate locations can slow down essential business operations when the sites must communicate with one another. Instead, flex space lets you keep your business in one place, streamlining your processes and increasing customer or client satisfaction.
Pros and Cons of Using Flex Space for Your Business
If you’re considering flex space for your next business investment, you should consider both the pros and cons. While there are many benefits of flex space, there are also a few drawbacks to consider before you commit to the property. Learn more about the pros and cons of flex space below.
Advantages of Flex Space
Some of the common reasons companies choose to invest in flex space include:
- Affordable leases: Flex space is often more affordable than traditional office spaces. You can also opt for short-term leases, ideal for businesses that are just starting out or experiencing rapid growth. Shorter leases allow you to move sooner if you need to expand your business location or move to another city.
- Employee interaction: With flex space, everything is typically located on one floor. All of your employees can work and interact under one roof. Communication between departments becomes more accessible since they’re all located in one building, making your business operations more efficient and timely.
- Lower upfront costs: Flex spaces are often more affordable to move into than traditional industrial and office spaces. Setting up the furniture, design and layout of a new corporate office space is much more expensive than a flex space. Flex spaces require fewer renovations, designs and additions than regular office spaces — just move in your stock, equipment and office necessities and you’re ready to settle into the space.
- High ceilings: Since flex spaces are often used as warehouses, they typically have plenty of ceiling space. High ceilings give you more room for storage while also making the work environment feel more spacious. More space allows noise to travel farther, reducing the amount of echo that comes back. Your work environment will seem quieter than it would if you worked in a tightly packed office.
- Easy access: Clients and customers can enter through a designated area to reach your offices rather than through a loading dock. The space can feel more professional to your clients, increasing trust in your business and brand. Many clients enjoy the organic and authentic feel of seeing your entire process in one space with all the moving parts in one area.
- Customization: Remodeling a traditional office space can be expensive, especially if the floor plan is tight and you need to knock down walls. Flex spaces usually have an easily customizable floor plan, allowing you to change the property to suit your needs at a lower price.
Flex space has numerous benefits for your business and can be more advantageous than a traditional office space. When you’re looking for your next place of business, consider the pros above as you make your decision.
Disadvantages of Flex Space
While there are many reasons a business may choose to invest in flex space, there are also a few drawbacks to consider before signing a lease:
- Fewer quality views: A traditional office space might give you an excellent panoramic view of the city if your office is on a higher floor. Since flex spaces are primarily on one floor, you won’t get a skyline view. However, you’re still likely in a quality location. High ceilings make your office and workspace more open than a traditional office space.
- Non-traditional workspace: While you can adjust the flex space layout to fit your needs, working in an industrial office space might be a new experience for your staff. They might miss the cubicles or separated operations of a more traditional office. However, people adapt quickly to new situations. A flex space also allows greater employee connection as multiple operations work in the same area. A flex space can be perfect for a more integrated business.
- Parking: Many flex spaces have their own parking spots but may not come with a designated parking garage. If you choose a flex space without ample parking, your employees and clients could find it challenging to find a space for their vehicles each day.
For the most part, you can remedy the disadvantages of flex space with careful planning. The space’s flexibility means you can plan around any potential speed bumps — like graduating to a larger flex space once your lease ends — so you’re not as bogged down by operational issues. With the money that you’re saving on the lease, it will be easier to afford the extra staff should you need it.
What Are the Costs of Flex Space?
In most cases, flex space will cost less than a traditional office space. Since the structure is already built, you won’t have as many up-front renovation and installation costs and only have to move in your existing operations. Flex spaces usually have lower lease terms, which also saves you money. The markup for flex space is usually only about 1%, whereas traditional office space is around 15%.
If you’re a new or growing business, flex space can be an excellent asset to help you gain your footing. You won’t have to budget nearly as much for rent costs and can use the extra money to fund additional projects or accelerate your business. You’ll also benefit from having your business operations under one roof. Rather than renting out multiple spaces, you can start and finish all of your business in one location, streamlining your processes and making it easier to grow as a company.
Should Your Business Use Flex Space?
Now that you understand what flex space is, along with its benefits and costs, it’s time to decide if it’s right for your business. Some of the reasons you should consider using flex space include:
- Expanding Operations: As your business grows, you’ll need more space. Flex spaces are perfect transitions for growing businesses — their warehouse-office combination allows you to expand existing operations while still having room for office work. This extra room for operations is essential for companies that need retail, warehouse and storage in the same place. Flex spaces allow you to keep your operations centralized even as they grow.
- Versatile Space: Working in a flex space allows you to adjust the general configuration to fit your needs. The combined warehouse and office construction means you can adapt warehouse and storage space to fit your needs. Expand or shrink your lab and manufacturing areas as necessary to accommodate the unique features of your business.
- Easy integration: The space’s flexibility means your business will easily fit into the existing space — no worrying about building additions or finding the perfect current configuration. Flex spaces are great for accommodating your unique industrial office needs. They’re also typically a single floor, making it easier for your employees to access and move through the building. Setting up is quick, and your business can run efficiently in its new home once you’re established.
Utilizing flex space can improve your business operations and employee retention. If you’re looking for a new space for your business, flex space offers unique solutions and benefits you wouldn’t find anywhere else.
Find Flex Space in Pennsylvania and the Tri-State Area
Commercial real estate is one of your most significant investments as a business. Flex space can help reduce costs while giving you significant benefits.
Zommick McMahon Commercial Real Estate can help you find the right property for your business. Founded in 1949, we have many years of commercial real estate experience. We come up with unique solutions to help you find a property that suits your needs, even if we have to look outside the visible market. Our attention to detail and negotiation abilities ensures that we’ll help you find the best deal possible on your next flex space property.
At Zommick McMahon, we put your needs first. We’ll build an individual relationship to ensure you get everything you need from your commercial property investment. Check out our flex space listings so you can start building a better business, or contact us today to get in touch with our team!
