Self-storage owners, investors, and developers are always looking for the next opportunity. As the self-storage market shifts, many are turning their attention to flex space.
In this episode of Outside the Box, Terry Campbell of Johnson Insurance sits down with Kris Bennett to discuss why flex space is gaining momentum, how it differs from traditional self-storage, and what owners should understand before entering the space.
Kris shares how he first noticed the trend and why the market stood out to him. In many areas, flex ownership is still highly fragmented, creating opportunity for investors, but also a learning curve. Unlike self-storage, which has more defined terms around unit sizes and facility types, flex space is still evolving.
These spaces are often used by local businesses such as contractors, e-commerce operators, fitness trainers, cabinet companies, window tinting businesses, and other growing companies that need functional space outside of their home or garage.
Terry and Kris also discuss why tenant use matters from an insurance and risk standpoint. Flex tenants are not just storing belongings. They are often running businesses, which means owners need to understand what each tenant is doing, what materials they may be storing, and whether proper insurance is in place.
A tenant doing welding, vehicle modifications, or storing flammable materials creates a very different risk than a fitness studio or e-commerce business. That is why reviewing certificates of insurance, confirming coverage, and making sure the property owner is properly listed as an additional insured can be so important.
The conversation also covers what strong operators are doing differently, from managing tenant mix and parking to improving security, signage, drive aisles, landscaping, and overall property appearance.
For anyone considering flex space, Kris’ biggest advice is to give yourself time to learn the asset class. Even with experience in self-storage or commercial real estate, flex has its own nuances, including tenant improvements, leasing commissions, downtime, common area maintenance, and re-leasing timelines.
As interest in flex space continues to grow, the opportunity is real, but so is the need for education, preparation, and strong risk management.
In this video, you’ll learn:
- Why flex space is gaining attention
- How it differs from traditional self-storage
- What types of tenants use flex space
- Why tenant use matters for insurance and risk
- How certificates of insurance can help protect owners
- What separates strong operators from riskier ones
- What new investors should understand before entering the space
At Johnson Insurance, we help self-storage owners, investors, and commercial property owners think through coverage, risk, and long-term protection strategies as their businesses evolve.
???? Have questions or want help reviewing your commercial insurance coverage?
Call us at 800-255-7777.
