[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_image _id=”4″ ][cs_element_headline _id=”5″ ][cs_element_text _id=”6″ ][cs_element_headline _id=”7″ ][cs_element_text _id=”8″ ][cs_element_headline _id=”9″ ][cs_element_text _id=”10″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”11″ ][cs_element_layout_column _id=”12″ ][cs_element_headline _id=”13″ ][cs_element_gap _id=”14″ ][cs_element_text _id=”15″ ][/cs_element_layout_column][cs_element_layout_column _id=”16″ ][cs_element_gap _id=”17″ ][cs_element_image _id=”18″ ][/cs_element_layout_column][/cs_element_layout_row][cs_element_layout_row _id=”19″ ][cs_element_layout_column _id=”20″ ][cs_element_headline _id=”21″ ][cs_element_text _id=”22″ ][cs_element_headline _id=”23″ ][cs_element_text _id=”24″ ][cs_element_headline _id=”25″ ][cs_element_text _id=”26″ ][cs_element_headline _id=”27″ ][cs_element_text _id=”28″ ][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content][cs_content_seo]What Is Flex Space in Commercial Real Estate?
Businesses everywhere are changing their commercial real estate strategies: small and mid-sized companies are searching for real estate flexible to their needs at lower investment risks while maximizing profits. What’s hot right now? These companies are searching for flexible spaces of “flex spaces.” But what is that exactly?
What is Flexible space or “flex space”?
Flexible space or “flex space” is any commercial real estate that offers a business space (usually a single-story building) that can be used as multi-purpose workspaces to meet business needs. Flex space commonly combines a warehouse, retail, offices and is grouped by shared common areas such as reception, lounges, conference rooms, kitchens, washrooms, and hallways.
Also of note is the increased demand for building contractor services. With so many people spending more time in their primary homes during the pandemic, the home renovation and remodeling industry saw a huge uptick. Contractors looking for shop space, additional warehousing and storage options turned to flex-space.
Why are flex spaces growing in popularity?
The demand for flex spaces in commercial real estate is rising because of their unique adaptability characteristics. A global health factor like the pandemic provoked more consumers to purchase their goods online resulting in several businesses changing their trading strategy from in-house shopping to warehouse distribution points.
What are the benefits of flex Spaces in commercial real estate?
– Lower Leasing Costs
– Scalability
– Lower Start-up Costs
-Networking at flex spaces
Lower Leasing Costs
The cost of renting a flex space is usually much lower than that of a specialized business space of similar square footage, making it more attractive to businesses. Flex spaces attract investors who search for short-term rather than long-term leasing and are low-risk investments. A short-term lease allows companies to move easily and quickly when the company expands.
Due to the pandemic, the commercial real estate current market is volatile. It is unclear how the pandemic will affect the future of the real estate market. In 2020 and so far in 2021, most businesses sent their staff to work from home, which has affected several companies that then decided to downscale on smaller office spaces. Companies might opt to remain with necessary office space and allow a majority of staff to work remotely. Thus, shorter-term leases are now more attractive to investors.
Scalability
Another contributing factor is that flex spaces are easily adaptable to business needs. For example, as a business owner, you may find that over time you need more warehouses than office space or vice versa. With flex space, you can more easily readjust your floor space to fit in your needs at an affordable cost without renting additional external space.
Lower Start-up Costs
For small or mid-sized businesses, flex spaces are ideal as companies do not have to invest in their furniture, design, offices, and others, thus cutting down on initial costs. These kinds of flex spaces typically are seen in management businesses offering serviced offices in shared working spaces. Flex spaces are ideal for investors as the initial investment cost is lower than if they leased their own office space.
Networking at Flex Spaces
Because multiple businesses are housed in the same flex space property and share common areas, it allows both management and employees to interact with staff members from other businesses. Flex spaces allow for open-plan offices that encourage staff members to interact and generate greater productivity.
With flex space in high demand, we at Pillar Real Estate Advisors are seeing low single digit vacancy rates on leases and historically high per square foot prices on purchases. The Pennsylvania counties of Chester County, Montgomery County, Delaware County and Berks County are some of the most popular in the region.
Are you searching for a flex space commercial real estate in Chester County, PA.? Pillar Real Estate Advisors are here for you, helping you to identify the perfect flex space property.
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