Flex space will never compare to the look and feel of traditional office space however across the country renting flex space is on the rise. And they are attracting companies in all types of industries including software and technology companies. For example in Austin Tx flex space is half the cost of traditional Class B office space.
What are Flex Buildings?
Flex office buildings are single story light industrial buildings with higher ceilings and with overhead doors and loading areas (e..g. grade level dock high) in the back. They were geared towards companies that used 18 wheelers and box trucks that transported products to and from the properties. They typically have surface parking and generous landscaping and are found in semi industrial business parks.
The flex buildings are designed to accommodate businesses needing light manufacturing, warehouse space, and office space.
Advantages of Flex Space
- You pay rent on the square footage you actually use. In traditional office buildings you also pay rent on shared square footage (e.g. common areas, bathrooms, hallways, lobbies, etc.). With flex space your usable square feet equals the rentable square feet.
- Rents are lower than traditional office space. Rents can be up to half the cost of traditional class B or C office space. In Austin for example flex property rents average $13 to $18 gross compared to $21 to $25 sf for class C office space.
- You get more square footage for the money
- Shorter term leases are more available – Most office space buildings want 3-5 year minimum leases. Depending on the market, condition of the space and landlord you have better chances of securing a shorter term lease
- Can build out office space inside just as you would in a traditional office. Once you walk inside you can’t tell if you are in the frost bank towner or a flex industrial building. The office build out can look like any other class A office buildout. The only difference is the outside of the building.
Flex space is more accommodating to all types of companies whether they need office space, warehouse space, or both combined. They are no longer just for businesses that have shipping and receiving needs. If you are looking to rent 1,000 to 50,000 sf and would like to save a ton of money then make sure you check out what flex space options there are in your area.