Flex Spaces

Industrial Flex: The Building Type Every Business Needs

Every business needs space for their operations. Flex industrial buildings can house manufacturing, distribution, offices, or retail – often all in the same building. This flexibility means more potential tenants, higher occupancy rates, and better returns for you.

The Flex Space Advantage

The versatility of flex spaces attracts a wide range of users—from startups and small manufacturers to e-commerce companies and service providers—leading to reduced vacancy risk and strong tenant demand.  These tenants are willing to pay a higher premium for smaller spaces that allow them to grow.  Our experience shows that even in downturns, entrepreneurs are created and people require small spaces for their businesses.

DXT Partners - Building Wealth With Storage and Flex Spaces

Higher Rent Per Square Foot

Flex properties consistently outperform traditional warehouses on rent per square foot, sometimes approaching higher retail shopping center rates.

DXT Partners - Building Wealth With Storage and Flex Spaces

Diversified Tenant Base

The beauty of flex space lies in its broad appeal. E-commerce companies need warehouse space with office areas. Contractors need equipment storage with customer-facing offices. Light manufacturers need production space with administrative areas. This versatility creates a deep tenant pool and reduces vacancy risk.

DXT Partners - Building Wealth With Storage and Flex Spaces

High Demand, Low Supply

Many markets have plenty of traditional warehouses, but not enough quality flex space. We focus on markets where demand exceeds supply.

DXT Partners - Building Wealth With Storage and Flex Spaces

Low Tenant Improvement (TI) Costs

Tenants in small bay flex spaces usually require minimal customization. This keeps build-out and maintenance costs low for landlords, and it preserves operating margins.

DXT Partners - Building Wealth With Storage and Flex Spaces

Expense Pass-Through

Flex facilities can be leased like retail shopping centers with NNN leases where the facility taxes, insurance, and common area maintenance costs are passed to the tenant. This provides a predictable cash flow for landlords.

DXT Partners - Building Wealth With Storage and Flex Spaces

Synergies with Storage

Small flex bays command the highest rent. These bays, coupled next to a storage facility, will allow businesses to expand, add vehicle fleet storage, and rent space to store equipment. These two product classes are complementary.

Flex Space Product Options

Our experience spans the full spectrum of flex industrial products, from small contractor spaces to large-scale warehouse operations. We’ve successfully leased and managed facilities ranging from 750 to 5,000+ square feet spaces across multiple Houston-area properties.

DXT Partners - Building Wealth With Storage and Flex Spaces

Micro Flex Spaces
(750-1,000 sq ft)

Small bay flex spaces serve individual contractors, small businesses, and entrepreneurs who need combined office/warehouse functionality. These units typically feature ground-level access and basic utility packages. With the smaller unit sizes, rates per sq ft are the highest with high demand.

DXT Partners - Building Wealth With Storage and Flex Spaces

Small Flex Spaces
(1,000-2,000 sq ft)

Mid-sized spaces support businesses that need more storage, light manufacturing, or distribution capabilities. It also allows them to maintain office components for administrative functions. This is the most commonly offered product on the market.

DXT Partners - Building Wealth With Storage and Flex Spaces

Medium/Large Flex Spaces
(2,000-5,000 sq ft)

Larger warehouse spaces with high-bay dock loading capabilities serve established businesses. They require significant storage, distribution, or light industrial operations with professional office integration. The demand for these spaces is usually low, but tenants like to stay 5+ years.

Common Questions About Industrial Flex Investment

Discover the benefits of investing in flex spaces and how we maximize your returns.

What types of businesses rent flex space?

Contractors, distributors, light manufacturers, service companies, and businesses that need both office and warehouse space.  Some other uses include pod-cast or digital studios, hair salons, boutique vendors, cross-fit gyms, and other small businesses.

We optimize the space mix, upgrade facilities, improve access and parking, and position the property for premium tenants.

Growing suburban areas with strong business activity, good transportation access, and limited competing flex space.

Flex properties often outperform during downturns because businesses downsize but still need space. Smaller, more affordable flex units become more attractive than large traditional spaces.

Flex tenant leasing can be anywhere from 1-5 years, with renewal options. The flexibility of the space encourages longer tenancy as businesses can adapt their space usage without relocating. Shorter terms increase demand and the ability to drive rates in tight supply markets.

Professional property management coordinates different uses through proper zoning, access control, and lease terms that ensure compatible operations and maximize property value.

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