The Flex-Industrial asset class serves as a hybrid between warehouse and office space. These assets are optimally located in suburban markets and are made up of a wide range of tenant profiles to include but not limited to small operation manufacturers or assembly facilities, corporate research and development departments, tech startups, small scale distribution facilities, retailers with showroom needs, and service providers who need storage facilities for parts and equipment.
The primary benefit of the flex product type from a tenant’s perspective is the versatility it offers, as spaces can be configured to meet the specific needs of the tenant. Small businesses who are not financially capable of leasing or do not require a 20,000/50,000/100,000 square foot building are able to get all of the benefits of the large industrial property and business park, at a much smaller scale.
These properties are typically multi-tenant and can offer amenities to tenants that they would otherwise not get in a single-tenant industrial setting such as site-wide wifi/internet, security cameras, equipment rentals, and tenant networking events, among others.
The positive outlook for flex industrial space is underpinned by the sector’s adaptability and resilience, with careful expansion and measured rent increases contributing to its growth trajectory.
