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.
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.
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.