What Is Flex Space Real Estate?
Welcome to your one stop shop for all things flex space real estate. If you don’t know me, my name is Hamza and I develop flex spaces and educate others on this asset class and how to develop them.
When I talk about flex space real estate, I’m mainly talking about a steel construction building that has both an office and warehouse function. These spaces have a bay door for companies to operate their business out of, as well as an office that customers can visit, and companies can do their operations out of. Take a look at this rough drawing below:
What Is Flex Space Real Estate Also Known As?
I prefer the term flex space real estate because that’s what these spaces are. Flex Spaces are spaces that are inherently flexible in their function, or: “capable of warping or bending and then reverting to shape.” (Oxford Dictionary). However, when discussing flex space real estate these developments are also often referred to as: office warehouses; small bay warehouses, and flex spaces; all of which fall into the category of industrial real estate.
What Kind Of Tenants Stay In Flex Spaces?
At my flex spaces, we have A LOT of different tenants. What each tenant does with the space and how they make it their own continues to surprise me. I have seen coffee shops, car tint businesses, crossfit gyms, take- out restaurants, anything– you name it. Let me show you a few examples:
What Does Developing A Flex Space Actually Look Like?
I find land that meets my criteria, put the money down and get building. Flex space real estate is so HIGH in demand that I was actually still developing one of my properties when a buyer approached me and I sold it before it was even completed. Crazy, right!
If the development is large enough, I develop my properties in phases. So basically I complete a few buildings at a time, start generating cash flow, then continue building the other buildings. This is a strategy that can also be used ifyour lender isn’t agreeing to lend you the full amount. The demand has been so high at my properties, that I actually had awaiting list for tenants to move in. Then I cash flowed my properties, and sold them so I can build, build, BUILD.
Let me show you my ACTUAL flex space designs, so you can see how I actually plan and build my flex spaces:
If you would like my checklist on what I look for in land before buying, click here and download your copy. If you want to learn more about flex space, check out my blogs on The Benefits Of Investing In Flex Space Real Estate and My Guide To Investing In Commercial Real Estate.