The $10.8 million sale of a Denver building will spark the introduction of a new co-warehousing concept in the Mile High City.
FlexHQ, a real estate company, recently purchased a 76,000-square-foot building at 5180 Fox St. in Denver. It consists of mostly warehouse space, with more than 6,000 square feet of office.
The brand, headquartered in California, buys traditional warehouse buildings, then flips them into co-warehousing units with shared offices. It currently oversees a property in Los Angeles.
The Denver property will be converted into rentable units spanning from 300 square feet to 3,000 square feet while the office will turn into a co-working space with desks, conference rooms, a communal kitchen and more.
“It was important to FlexHQ to select a location easily accessible to metro Denver’s growing population,” said Tyler Carner, executive vice president at commercial real estate and investment firm CBRE. “As expectations move toward quicker delivery times, more companies are looking to hold their inventory closer to the end customer.”
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Co-warehousing is considered a “relatively new commercial real estate concept” by CoStar, which provides commercial real estate information. It points to startups and entrepreneurs as the primary targets.
This building will be FlexHQ’s first Colorado location. Founded last year, the brand is backed by Storage Etc., a real estate development, investment and management company.
“FlexHQ meets a specific need for businesses that require more sophisticated logistics support than self-storage without the long-term commitment of traditional warehouses,” said Laurent Opman, co-founder of FlexHQ. “Denver is home to a growing population not easily served by another large metro area, and we view it as an essential market in our national growth strategy.”
CBRE represented both FlexHQ and the seller in the deal.
