When it comes to warehouse space, bigger isn’t always better.
Scores of businesses have learned that the hard way after being saddled with far more space than they need, simply because that’s all that’s available. And the leases on large spaces are typically long-term and pricey with little in the way of amenities.
Enter FlexHQ.
How it works
The Los Angeles-based company’s “co-warehousing” business model involves buying large industrial warehouses and subdividing the interior to create smaller spaces, along with offices, conference rooms, a photo/filming studio and truck loading docks.
FlexHQ’s first facility at 3040 E. 12th St. in L.A. comes with flexible month-to-month lease terms that allow businesses to expand into a larger space, or downsize into a smaller one when needed.
“The building is 199,000 square feet, and we’ve created 27 smaller warehouse units and 10 office spaces in the first phase that range from 500 to 3,000 square feet,” said Ryan Jones, the company’s director of customer experience. “Most of those spaces have been leased, and when we’re done there will be 139 individual warehouse and office spaces.”
The facility, which opened its doors in mid-October, also has a podcast space, a kitchen and a reception area where businesses can meet with clients. Co-working desks will be added in the second phase of renovation.
Two-thirds of the building is expected to be converted by the end of 2023.
‘Great curb appeal’
Nolen Niu, whose Vivid Design & Fabrication business provides custom upholstered furniture for hotels, restaurants, nightclubs and other venues, leased a 1,000-square-foot space in the building in March.
“I’m paying $2,500 a month and there are lots of nice amenities,” Niu said. “It’s a beautiful place. Very client friendly with great curb appeal. The concept is brilliant.”
Niu especially likes the flexibility that comes with a co-warehousing space.
“My business is seasonal,” he said….
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