Self storage has long earned its reputation as one of the most dependable asset classes in commercial real estate. Its operational simplicity, broad demand base, and resilience through economic cycles continue to make it a foundational investment for developers and owners.
At the same time, tenant needs are evolving. Many small businesses, contractors, and growing service providers now need spaces that allow them not only to store materials, but also to actively work, manage inventory, and run day-to-day operations. This shift has given rise to the growing conversation around flex space — a concept being defined and advanced by FlexSpace Nation. Importantly, flex space is not a replacement for self storage. Instead, it represents a complementary format that expands how properties can serve today’s tenants.
Flex space blends elements of self storage, light industrial, and workspace into a single adaptable unit. As outlined by FlexSpace Nation, these spaces are designed for tenants who need room to store goods and equipment while also conducting business operations.
Typical features may include roll-up doors, increased clear heights, power access, and small office or work areas. Storage remains a core component, but the added functionality allows tenants to do more within the same footprint. By establishing a clear term and shared understanding, FlexSpace Nation is helping brokers, developers, and investors align expectations around design, use, and leasing strategies.
The continued growth of small businesses, e-commerce sellers, skilled trades, and local service providers is reshaping real estate needs. These users often require space for tools, supplies, and inventory, but also need areas for assembly, repairs, packaging, or administrative tasks.
Traditional self storage effectively addresses pure storage needs. Light industrial supports operational activity. Flex space brings these requirements together in a practical, efficient solution. For property owners, this evolution does not mean moving away from storage. Instead, it means broadening the range of tenants a property can serve and creating opportunities for more diversified income streams.
Flex space is gaining interest because it often attracts longer-term tenants with active business operations. These users tend to stay longer, invest in their units, and value locations that support both storage and productivity.
By incorporating flex-style units into a development, owners can appeal to a broader segment of the market. This added utility can enhance overall property demand while still benefiting from the stable performance characteristics that make self storage so attractive. In many cases, flex space strengthens a project’s appeal without competing with traditional storage offerings.
Self storage remains a low-maintenance, high-utilization cornerstone for many portfolios. Its operational efficiency and consistent demand continue to make it a smart foundation for both new developments and long-term holdings.
Flex space introduces additional use cases and tenant profiles, particularly small business operators who need more than just storage. When planned strategically, the two product types can coexist within the same property or portfolio, helping owners balance short-term flexibility with longer-term tenancy. This combination can create a more resilient property mix that adapts to changing market needs while preserving the proven fundamentals of storage.
At MakoRabco, self storage remains at the core of what we do. Our experience designing and building storage facilities across diverse markets has shown us just how strong and enduring this asset class continues to be.
We view flex space as a value-add option — one that can complement storage fundamentals when market conditions support it. Our focus is always on thoughtful planning, durable construction, and adaptable designs that align with how tenants use space today and how those needs may evolve in the future.
To explore how the industry is defining and discussing this evolving asset type, visit FlexSpace Nation and their overview of what flex space is.
If you are evaluating how flex space might fit into an upcoming development, the team at MakoRabco is ready to help you plan strategically and build with confidence.