Inspired by the creative office movement, a new generation of industrial flex space is emerging that combines creative office and industrial uses under one roof. Most of these projects recycle large old industrial buildings by dividing them up for multiple tenants.
It is a relatively new product type that appears most popular in mature urban locations with a large, educated young workforce. However, expect the concept of ‘creative industrial’ to spread to more urban markets in the coming years. 

This type of space is attractive to biopharma companies, suppliers of outdoor sporting equipment and online food or clothing manufacturers and distributors as well as large e-commerce retailers.

Industrial developers face stiff competition from creative office, retail and residential lofts uses for old warehouse buildings located within the urban core. The best opportunities for redeveloping older warehouses to creative industrial use exist in urban locations on the perimeter of core markets.

Patricia Kirk
National Real Estate Investor
Contributing Editor