For years, flex space real estate has grown in popularity throughout the commercial reality sector. Flex space versatility, high demand, and affordability have made it a fantastic choice for commercial investors looking to maximize their returns.
However, demographic shifts among Gen Z homeowners and renters have quickly made flex spaces the next big thing in residential real estate. With the right approach, flippers, builders, and rental owners can reap the same financial benefits as commercial investors. But what is a flex space in residential real estate?
Below, we’ll discuss the flex space meaning for residential real estate and the best ways investors and builders can accommodate the growing need for these spaces for homebuyers and renters:
Flex Space Definition
You may be familiar with commercial real estate flex spaces, which are defined as a small metal building, around 10,000 square feet, that combines industrial warehouse spacing with office areas. This affordable setup attracts multifaceted businesses that require both open spaces and offices to meet the versatile needs of their company–such as auto dealers, manufacturers, fitness centers, and niche businesses like pickleball courts and artist houses.
However, with today’s homebuyers and renters demanding affordability, flex spaces or flex rooms have taken on a whole new meaning in residential real estate. Simply put, a residential flex space is a versatile space within a home or rental unit that’s not designed for any one purpose. This flexibility empowers homeowners and renters to design or optimize spaces according to their unique needs. Whether it’s a home office, hobby room, a play fun room for the kids, or even a home gym, a flex space concept creates more possibilities and the ability to use the space optimally.
Best of all, properties with flex spaces can boost a home’s value by 4 to 6 percent according to Consumer Reports. The flex space boom gives innovative builders, investors, and landlords the upper hand in the real estate market and an opportunity to lure top prospects with unique, multi-functional concepts.
Flex Space Ideas
Now that we understand what a flex space is and why homes with flex spaces for sale are appealing to today’s homebuyer, let’s look at the best options and uses for flex spaces in a fix and flip or rental property:
Combination Room
The most popular and widely used flex space is a combination room. With a few functional pieces, you can instantly turn a space or room within your property into a multi-functional room. With today’s homebuyers less concerned with traditional spaces compared to practicality, the opportunities throughout the household are endless.
Some of the top uses for a combination flex space include:
- Dining Room / Home Office: By minimizing the size of a dining room table, you make space for a smaller working desk. This allows homeowners or tenants to entertain dinner guests at night still while utilizing the office space during the day.
- Living Room / Home Office: The home office will be a recurring theme throughout. With remote working remaining a norm in corporate America, many home shoppers and renters require home office space.
While Americans continue to utilize the living room for movie nights, entertaining friends, and relaxation, today’s consumers demand more use within one of the larger areas of the house. A workspace in the living room gives remote workers and students the luxury of using the square footage for both pleasure and business.
- Guest Room / Yoga Studios: An often underutilized room, the guest room provides a wealth of opportunity for homeowners. Guest rooms can be converted into dual-functioning offices, gyms, craft rooms, play areas, and yes, yoga studios.
Depending on your target homebuyer or tenants, design accordingly, utilizing the full amount of space and implementing furniture or amenities–like closet shelving or cubbies–that simplify converting the space from one use to another.
Laundry Rooms
Speaking of underutilized…while a necessity, the laundry room is one of the least used rooms within a home. Recently, a fun and functional room concept has become the laundry/home office room combination. By building a space for the washer and dryer units into a workspace, investors can help homeowners and tenants optimize an often underused laundry room.
Additionally, many homeowners have converted their laundry room space into nurseries for napping children, playrooms for active children, and workout areas for an at-home burn. By utilizing laundry tower concepts, plenty of shelving and drawer space, and imagination, you can attract homebuyers and renters looking to optimize their washing quarters.
Basement & Attic Space
Whether you’re building from the ground up, flipping, or renting, the goal of flex space real estate is to make the most of a property’s space. Single-family homes or units with unfinished, underutilized basements and attics are a thing of the past.
Today, homebuyers and renters appreciate a carpeted or finished basement that can be converted into a:
- Playroom
- Movie theater or entertainment room
- Bonus room
- Home gym
- Bar
Additionally, consumers are looking for an attic with natural lighting that can be converted into a unique guest room, craft room, music room, home library, or home office.
By thinking outside of the box and focusing on optimization rather than tradition, builders, investors, and landlords can turn forgotten and underappreciated areas of a house into eye-catching, attractive, and lucrative flex spaces for today’s consumers.
Flexible Financing For Your Flex Space Vision
For builders and long- and short-term investors looking to attract today’s consumers and take advantage of flex space real estate, adequate funding is necessary to implement your vision.
CIVIC provides the most reliable and flexible capital lending programs to meet the unique needs of today’s investors.
We provide:
- Fix and flip loans
- Ground up financing
- Stabilized bridge loans
- Rental and rental portfolio loan options
By taking a simplified approach to residential real estate, CIVIC can provide tailored loan packages that cater to any project’s needs and fuel the visions of today’s most innovative investors.
Ready to seize the day with the most reliable and flexible financing partner on the market? CLICK HERE to get started today!
