Flex spaces are industrial or warehouse buildings that have been converted into office space. These properties are ideal for a wide range of businesses and even offer a few benefits compared to traditional office buildings, such as free parking and higher ceilings.
Teletare is made up of a team of experienced commercial real estate brokers. We offer a wide range of flex spaces for sale that are perfect for both businesses and investors. With new listings being added to our site every week you’ll have no trouble finding a property that meets your requirements.
How to Evaluate Flex Spaces
There are a number of things to consider when evaluating a flex space. Most spaces will have a combination of offices and warehouses, which makes assessing them a little more complicated than traditional office buildings.
Things to consider for businesses:
- Location: How accessible is it for your team and clients? See below for tips on how to choose the right location.
- Infrastructure: Assess the infrastructure needs of your business before looking at any property. This includes your internet, phone, and power requirements. Ideally, the space you choose will already have everything you need.
- Warehouse Space: If the space includes a warehouse you’ll want to be sure the types of industrial doors it has will work for the kinds of products you’ll be moving in and out. You’ll also want to ensure there is adequate space inside the warehouse.
- Maintenance: What is the current condition of the building? Older buildings or ones that are in poor condition will likely result in additional expenses down the road.
Things to consider for investors:
- Quality of Tenants: What kinds of tenants are currently in the building? Check into their history to see how dependable they are when it comes to keeping up with the terms of their lease.
- State of Tenants’ Businesses: It’s a good idea to be familiar with the state of all of your tenants’ businesses. If their businesses are expanding or contracting that could lead to changes with their lease.
- Operating Expenses: Review the property’s financial information to see how much it will cost to maintain the building. You should also inspect the entire property to see if there are any issues that may result in additional capital expenditures in the future.
- Net Operating Income: Before investing in a property you’ll want to estimate how much income you’ll be able to generate each year. You can do this by subtracting the property’s operating expenses and vacancy from its scheduled gross income, giving you the net operating income.
- Capitalization Rate: You should also calculate the capitalization rate to determine your expected rate of return on your investment. You can do this by dividing the net operating income by the value of the property, giving you the capitalization rate.
- Lease Rates: Compare the current lease rates to the market rates. Are they higher or lower? Based on current conditions do you think you could increase rates in the future?
- Vacancy: Does the building have any vacancy? The more vacant spaces there are the more time you’ll have to put in to trying to fill those spaces once you purchase the property.
Choosing a Location
Location is a key consideration for any business. So, before looking at any flex spaces for sale be sure to have a clear understanding of what you’re looking for.
Here are a few things to consider:
- Competition: Are there similar businesses to yours operating nearby? The less competition you have in your area the easier it will be to grow your customer base.
- Zoning: With flex spaces being used for all types of businesses it’s important to know exactly what a property is zoned for. This will determine what type of business can and can’t be operated there.
- Accessibility: Will customers or clients be visiting the location? Try to choose a property that is easy to find and accessible for anyone who you’ll be doing business with. You’ll also want to choose a space that’s centrally located for your team.
- Tips for Investors: Think about your potential tenants and how the above factors will impact them. If you can find a property that works for your ideal tenant you’ll have a much easier time filling the space.
Advantages of Flex Spaces Compared to Traditional Office Buildings
While traditional office building may have a little more prestige, flex spaces provide businesses with a few advantages:
- Parking: Because these spaces are usually located outside of urban areas there is often ample free parking for employees, customers, and clients.
- Warehouse Space: Many flex spaces include warehouses attached to office space. This perfect for companies that require both types of spaces, as it allows their entire team to work in one location.
- Customizable: Flex spaces are much easier to customize than traditional office spaces, which means they can be adapted to fit a wide range of businesses.
Find Your Ideal Flex Space
Are you ready to start looking for flex spaces for sale in King County? Our commercial real estate brokers are ready to help you find your ideal space.