The "Flex / Showroom Concept"

Another build type that will be a little higher end, we call it the “Flex / Showroom concept”. You will see in the image across, there is a little more design involved in this one and the area, it will tailor to several different type of flex tenants from your general industrial sub contractors, to showroom and even some retail style tenants. The area demographics and tenant pool will help shape it. We like this build type the most as it tailors numerous type of tenants and will have a very large tenant pool making the concept work for many different type of businesses. 

The cost for a “Small Bay Flex / Showroom” concept will generally be higher than your basic build due to the design and build quality having numerous additions to it. Also, your tenant improvements will generally cost a little more on the inside as well. 

Several positive notes from this type of build will be:

1. A more robust tenant pool of varying businesses

2. Tenants tend to spend their own money on their space, making them more prone to renewing and keeping the park in better shape as they have more commitment to the space

3. Tailoring to a wide variety of tenants from industrial, sub contractors, retail and showroom, these assets can generally withstand market downturns when one sector like retail has issues, it can still tailor to the showroom and industrial tenants.

4. These will generally demand higher rents than the basic industrial and have had strong historical rental growth

5.   Sell Capitalization, the buyer pool when looking to sell expands rapidly and you get into the Real estate funds and higher level investment groups that will pay top dollar.