Flex Space Emerges as the Next High-Growth Real Estate Category

From Storage to Scalable: A New Asset Class Gains Momentum Across the U.S.

ST. LOUIS, Jan. 29, 2026 /PRNewswire/ -- FlexSpace Nation, a business-building platform accelerating growth of the flex space asset class, is drawing national attention as investors, developers, and operators seek higher-yield, scalable alternatives to traditional commercial real estate. In their first feature of 2026, the January issue of the Texas Self Storage Association Magazine spotlights FlexSpace Nation and its founder, James Reid, highlighting how flex space helps build wealth, diversify income, and unlock higher returns.

The article, titled "Flex Space 101: What It Is and Why Self Storage Operators Should Pay Attention," details a national shift in demand for mixed-use, low-overhead spaces tailored to contractors, ecommerce operations, and light manufacturing tenants.

Cash Flowing, Simple Operations

"Flex space is the next evolution of income-producing property," says Reid. "It combines the simplicity of self storage with the cash flow potential of light industrial real estate – and institutional capital is circling."

Read the full article on FlexSpace Nation's new Resources tab: https://flexspacenation.com/what-is-flex-space-for-self-storage/

With vacancy rates tightening and new construction lagging, FlexSpace Nation is helping developers and investors succeed in this emerging asset class.

Why This Matters:

• Small business tenants (contractors, ecommerce, fitness) fuel demand for affordable, adaptable spaces
• Supply is severely limited:

"Flex space supply grew less than 3% over the past 10 years," said Adrian Ponsen, National Director for Industrial Market Analytics at CoStar. "For comparison, employment industries that use [flex space], like construction and wholesale trade, increased 20% over the same period."

• Institutional real estate investors are beginning to scout the category

Vacancy Lower, Rent Growth Higher than Other Sectors

"While national vacancy rates for large-scale industrial properties have climbed significantly, now hovering around 7.4%, small-bay vacancy remains notably lower at approximately 4.2%," according to Lee & Associates, Commercial Real Estate Services. "Further, Corebridge Financial reports that small-bay industrial rents have jumped more than 40% since 2020, significantly outpacing broader industrial rent growth."

About FlexSpace Nation

FlexSpace Nation is a new business-building platform advancing the flex space asset class – also known as small bay industrial and contractor garages. By standardizing terminology, expanding data access, and educating the market, FlexSpace Nation empowers developers and investors to lead this emerging sector. Where the flex space movement takes place: www.FlexSpaceNation.com

SOURCE FlexSpace Nation