1 INSIGHT

Commercial real estate flex industrial property combines office, light manufacturing or lab, and warehouse into one unit. It’s designed for businesses that need both workspace and operational space under one roof – such as sales office, high-tech/engineering lab, light manufacturing, R&D/biotech/research lab, light assembly, and e-commerce users.

What defines a “flex” space is the mix of uses. Most properties integrate office, production or lab space with warehouse areas, but the ratio varies. If there’s too much office and not enough warehouse, the space may not work well for business needs.

The key is finding a layout that aligns with how your business actually operates.

2 ACTION STEPS FOR TENANTS

1. Understand the Typical Flex Space Ratios
   Before leasing, evaluate how the space is divided:
   
   – Office: 10%–50% (administration, sales, meeting space)
   – Lab / Light Manufacturing: 10%–40% (R&D, assembly, production)
   – Warehouse / Storage: 20%–60% (inventory, shipping, equipment)
   
   Tenants should compare these ratios to their operational needs. For example, a life science user may need more lab space, while an e-commerce business may prioritize warehouse and shipping areas.
   
2. Evaluate Layout, Access, and Usability
   Beyond percentages, confirm the space works operationally:
   
   – Clear separation between office and warehouse areas
   – Adequate power and HVAC for lab or manufacturing use
   – Loading access (drive-in/roll-up/grade-level doors or high dock doors)
   – Ceiling height and storage capacity
   – Parking ratio for employees and visitors
   
   A well-configured flex space should support both front-end operations and back-end logistics.

3 KEY TAKEAWAYS

• Flex industrial space combines office, lab/manufacturing, and warehouse in one unit.
• The right percentage mix is critical to operational efficiency.
• Layout, loading, and building systems determine how functional the space truly is.