Flex Warehouse Spaces vs. Co-Warehousing

There once was a time when it was difficult to impossible for a small ecommerce business to invest in a warehouse. Storage spaces like these were large and expensive. They also had leases that could last up to a decade. 

Today businesses can still rent a warehouse. But, there are better options out there for small businesses that need storage space –  like a flex warehouse or a co-warehousing space. What’s the difference between a flex warehouse and a co-warehousing space? 

Here’s everything you need to know about flex warehouses vs. co-warehouses. 

What is a flex warehouse space?

A flex warehouse space, also known as a public space, public warehouse, or multi-client space, is an area a business can rent for storage use. Sometimes it’s also used as a workshop, office, or retail space, but this is less common. 

The overall space is a shared warehouse or office space for multiple businesses. The internal space of the building is subdivided to suit the area needed by the enterprises in it with moveable walls on wheels. This provides business owners with multipurpose works space to meet business needs. 

The leases are almost as flexible as the storage, and include short-term rental options, like renting on a month to month basis. 

What is a flex warehouse space used for?

A flex warehouse space is most often used for storing products and materials for a short amount of time. Sometimes businesses will use a flex warehouse as an office or a workshop, but this is less common given that flex warehouses often aren’t super secure. 

What’s the difference between a flex warehouse and a co-warehouse?

The main difference between a flex warehouse and a co-warehouse is that co-warehouses are more secure than flex warehouse spaces. Given that co-warehouses have walls that don’t move, your important documents, materials, and products are safer. 

Co-warehouses also feel like more professional spaces, and less transitory compared to a flex warehouses. If you’re meeting with investors or donors, a well organized co-warehousing space will likely make a stronger first impression. 

Co-warehouses come in all shapes and sizes. They usually include warehouse doors, loading docks, and 14+ foot tall ceilings. 

Flex warehouses may make more sense than co-warehouses in temporary situations. For example, if your business is doing a pop-up in a city for a month or two (say, for an event like South by Southwest), you may want to find a less formal space to store your items for the duration of your stay. 

PC: Set Shop

What are the pros of a flex warehouse?

Flexibility

One of the biggest selling points of renting a flex warehouse is the overall flexibility it can provide new or rapidly growing businesses. Generally, the leases can accommodate businesses who need a space to rent month to month. 

Affordable

Flex warehouse spaces are often much more affordable than a traditional warehouse lease. This can help your business save money during scrappy growth phases. Yet, given that you’ll only have a couple of movable walls, you may be responsible for expenses for items like wracks, chairs, desks, or anything else you might need. 

Customization 

Since the walls and furniture move, it’s easy to customize your space for your business needs at any given time. Open floor plans allow you to tinker until you’ve found the best way to maximize your productivity. 

What are the cons of a flex warehouse?

Zoning Restrictions: Depending on your type of business and the location of the flex warehouse space, there may be zoning restrictions that preclude you from operating out of a specific area. 

Parking: Not all flex spaces have a parking garage, or may have minimal parking for clients, deliveries, shipments, or employees. Check with the managers of any space you tour about how the parking works if you know you’ll need places to park. 

Security: Many flex warehouse spaces invest in some type of security. Yet, not all of them provide enough security for all businesses. If your product is especially valuable and easy to steal, it’s worthwhile to check into security protocols. If they’re not up to standard, you may want to find a different warehouse for your business.

What are the pros of a co-warehouse?

Flexibility

Co-warehouses can accommodate changes to rental space based on your business’ demand increasing or decreasing. It can also be used as a warehouse space, office, workshop, or retail center. 

Affordability

Co-warehousing spaces are more affordable than traditional warehouses. You’re only required to make an initial payment that normally includes design, furniture, warehousing wracks, etc. This means you’ll be avoiding the expenses that come with a traditional warehouse space like funding furniture and design. 

You also won’t be stuck footing the bill for space you don’t need if you scale back your product offering dramatically, or if staff needs to be reduced. 

Builds Community

A traditional office and warehouse usually only houses one company. A co-warehouse often includes multiple companies that can network and work together. This could look like placing large orders of materials or products at once or using the same shipment provider to reduce costs. 

There are also amenities that bring the renters together like free wifi, coffee, lounges, kitchens, meeting rooms, etc. Some co-warehousing spaces will also host activities to build camaraderie amongst tenants. 

Flex warehouses tend to have more migratory businesses, so the community isn’t always as strong as at co-warehouses. 

Efficient

If you have an office in your home and a warehouse across town, you know that communication can sometimes be a hurdle. Not with a co-warehouse space. Since you can run your entire business in one area, you can streamline your processes and communication.

You’ll also have the opportunity to expand or reduce the space you need. This can be especially impactful if your business has seasonal shifts. 

And, as a new business owner there is a good chance you’ll pivot some of your core offerings and products. Co-warehouse spaces allow you to save money during big shifts in your business – increasing your overall resilience. 

Secure Facilities

Flex warehouses allow brands to store their products when needed but don’t always offer the security and structure needed to run a business from. This is one major advantage co-warehouses have over flex warehouse spaces. A flex warehouse can only be so safe when the walls are on wheels. 

Learn more about the benefits of co-warehousing here. 

What are the cons of a co-warehouse?

Limited Branding Opportunities: Since flex warehouses are very industrial spaces, if that doesn’t match your brand’s aesthetic you may look out of place. This will likely be an issue if you want to use the flex warehouse space as a retail space, too. 

You Can’t Pick Your Neighbors: There’s no guarantee you’ll love the other folks working out of the flex warehouse space. While coworking can be a positive, it can also be a negative if the other people in the space are loud or inconsiderate. 

When is it a good idea to invest in a flex warehouse?

A flex warehouse makes the most sense if you need extra space for a short amount of time. Big events, seasonal rushes, or when you need an out-of-town space during a transitory time is when a flex warehouse makes the most sense for a growing business. 

When is it a good idea to invest in a co-warehousing space? 

If you’re expanding your operations, you’ll likely want to invest in a co-warehouse. It will give you room to move and manage more products and can act as a catch-all space for retail, warehouse, production, and office activities. It’s ideal for businesses that know that they want to continue growing their business and are ready to put down some roots without signing a long-term lease. 

Need a co-warehouse space in Atlanta, Denver, or Dallas?

If you need a more permanent warehouse space, you need a co-warehouse, not a flex-warehouse. Build your community and your brand at a fraction of the cost of a traditional warehouse and with a level of security flex warehouses can’t provide.

Explore the Shift warehouse in Atlanta, or stay tuned for updates on the warehouse spaces coming to Dallas and Denver. 

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