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Flex Industrial Office Ratio Calculator

Flex industrial has office buildout mixed with warehouse — ratio drives blended rent.

%
$
$
$

Blended rent / sqft

$15.25

Total TI exposure

$225,000

Total annual rent

$305,000

How the math works

Blended rent = (warehouse sqft × WH rate + office sqft × office rate) / total.

5,000 × $28 + 15,000 × $11 = $305,000 / 20,000 = $15.25 blended. TI = 5,000 × $45 = $225k.

How to Use

  1. Enter total sqft.
  2. Enter office % of total.
  3. Enter warehouse rent per sqft.
  4. Enter office rent per sqft.
  5. Enter TI per sqft office.
  6. Read blended rent and TI exposure.

Frequently Asked Questions

Flex industrial defined?

Flex industrial: single-tenant or multi-tenant building with mix of office (administrative, sales, design) + warehouse (storage, light assembly, showroom). Office typically 15-35% of sqft. Contrast with: pure warehouse (<10% office), light industrial manufacturing (40-60% office), office/R&D (60-80% office). Flex tenants: service contractors, HVAC, plumbing, landscaping, electrical contractors, light manufacturers, distributors.

Typical office ratios?

Light industrial/distribution tenant: 10-20% office. Manufacturing with engineering/design: 20-35% office. Service contractor (plumbing, HVAC): 25-40% office (admin/sales heavy). Showroom/retail-adjacent: 35-55% office. Tech-industrial (prototyping, light mfg): 40-60% office. Match office % to tenant — oversized office = stranded capex; undersized = tenant rejects space.

Rent differentials?

Office portion: $20-40/sqft depending on finish quality. Warehouse: $6-14/sqft depending on clear height. Blended flex rent: $12-22/sqft. Office-heavy flex (30-40% office): $18-28/sqft. Pure warehouse: $8-12/sqft. Spec office finishes: basic (drop ceiling, standard HVAC): $25-40/sqft build. Premium (exposed ceiling, upgraded HVAC, executive): $40-80/sqft build.

TI amortization?

Office TI in flex: $25-75/sqft. On 5,000 sqft office × $40 TI = $200k. Amortize over 7-year lease at 8% = $3,200/mo = $7.68/sqft/yr premium. Tenant effective office rent: $35 + $7.68 = $42.68 (vs advertised $35 rate). TI required for second-gen tenants who don't fit prior layout — often 30-50% of prior TI. Careful planning: modular office design enables 2-3 tenant cycles with minimal TI.

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