Flex buildings combine office space and warehouse space and are designed to be versatile. Typically, the office space is at the front of the building and/or on a second floor and the warehouse space is in the back of the building.
The office area can be used as office, showroom, quasi-retail or research and development space, while the warehouse is used for storage, light assembly or distribution uses. The warehouse space has truck drive-in doors and/or loading docks for trucks.
Flex/warehouse properties are generally perceived as not being management intensive. Hence, mismanagement is prevalent at these properties. The lackadaisical management mindset contributes to other inherent challenges associated with operating them.