FlexHQ has acquired a property in Denver to serve as the first Colorado outpost of its industrial co-working brand. The company acquires traditional warehouses and turns them into adaptable co-warehousing units with shared creative office space.
FlexHQ paid $10.8 million for the property located at 5180 Fox St. The 76,000-square-foot building is primarily warehouse space with 6,200 square feet of office. It is located in central Denver just west of Interstate 25, less than one mile north of the intersection with Interstate 70.
CBRE’s Tyler Carner, Jeremy Ballenger and Jessica Ostermick represented FlexHQ in the acquisition. Bill Thompson and Mike Camp, also with CBRE, represented the seller.
“It was important to FlexHQ to select a location easily accessible to metro Denver’s growing population. As expectations move toward quicker delivery times, more companies are looking to hold their inventory closer to the end customer,” said Carner, executive vice president, CBRE.
FlexHQ plans to renovate the office space at 5180 Fox St. into a co-working layout with shared and private desks, conference rooms, call booths, copying/printing services, and a communal kitchen. The warehouse space will be partitioned into rentable units ranging from 300 to 3,000 square feet.
“FlexHQ meets a specific need for businesses that require more sophisticated logistics support than self-storage without the long-term commitment of traditional warehouses. We offer tenants flexibility, amenities and convenience in targeted locations. 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,” said Laurent Opman, co-founder of FlexHQ.
FlexHQ is focusing its expansion on major metro areas with high demand for last-mile delivery and low availability of existing warehouse space. Driven by demand and sustained leasing activity, metro Denver’s industrial availability declined to 6.5% in the second quarter of 2022, according to CBRE research. This is down 220 basis points year-over-year and is approaching the lowest rate of the past 20 years, which was 6.4% availability in 2014.
