The short answer Flex space for sale comes in two forms: individual flex condo units inside a larger building, and whole flex buildings. Condos are the usual entry point for a small business that wants to own, and they can often be financed with an SBA 504 or 7(a) loan if your business occupies the space. Before you buy, review the association's documents as closely as the unit itself.
Goff CRE Group, brokered by Nassar Realty, represents buyers and sellers of flex condos and flex buildings in Erie, Lafayette, Longmont and the rest of Boulder County and southwest Weld County.
Should you buy a flex condo or a whole building?
A flex condo is a unit you own individually inside a larger building or park. An owners association manages the shared parts (roof, parking, landscaping, snow removal) and owners pay dues to fund them. It is the smaller check and the simpler property to run, but you share decisions with your neighbors and live under the association's rules.
A whole flex building gives you full control and, often, space to lease to other tenants. It also means a larger purchase, all the maintenance and capital repairs, and landlord work if you have tenants. If you plan to use owner-user financing, how much of the building your business occupies matters (see below).
What drives the value of flex space?
- Location and access. Distance to your crew, customers and highways, and how easily trucks get in and out.
- Functional specs. Clear height, door count and size, power (including three-phase), and the office-to-warehouse mix.
- Unit size. Smaller units usually trade at a higher price per square foot than larger ones, because more buyers can afford them.
- Condition. Roof, HVAC, doors and paving. Ask how old each is and what the association (or you) will pay to replace them.
- Association costs and health. Monthly dues, reserves, and any history of special assessments.
- Allowed uses. Zoning and the declaration's use restrictions decide who can buy the unit from you later.
- Comparable sales. Recent closed sales in the same building or nearby are the strongest evidence of value.
What condo association documents should you review?
Ask for these early, ideally as a due diligence deliverable in the purchase contract, and have your attorney review them:
- Declaration (and amendments). Defines your unit, the common elements, what you own versus what the association maintains, and the use restrictions.
- Bylaws and rules. Voting, parking, signage, outdoor storage, hours, noise and leasing rules.
- Current budget. What the dues cover and whether they look realistic.
- Reserves. The reserve balance and any reserve study. Thin reserves can mean future special assessments.
- Minutes. The last year or two of meeting minutes show disputes, deferred repairs and planned projects.
- Insurance. What the association insures and what you must insure yourself.
- Assessments and disputes. Any pending special assessment or litigation.
A declaration can prohibit uses that zoning would allow. If your business involves customers, noise, fumes, vehicles or outdoor storage, confirm it is allowed by both the town and the association before you go under contract.
Can you buy flex space with an SBA loan?
Often, if your business will occupy it. SBA owner-user loans are built for businesses buying the property they operate from. For an existing building, the business generally must occupy at least 51% of the rentable space; for new construction, generally 60%. A typical SBA 504 structure is about 50% bank loan, 40% CDC loan and 10% down from the borrower, with 15% down for startups or special-purpose properties and 20% if both apply. SBA 7(a) loans can also include working capital, equipment or a business acquisition.
Alex coordinates with your lender; he does not make loans. Rates and terms vary by lender, this is not a loan offer, and you should confirm the details with your lender. More on SBA owner-user purchases and SBA 504 vs 7(a).
