Discovering The Difference Between Serviced vs Managed Offices

If you are a beginner, you may wonder what’s the difference between a serviced office space and managed offices. It is not surprising that there is some ambiguity over what distinguishes the two setups because there is an overlap of aspects that first appear to be strikingly similar. So we’ve put together a helpful guide to clearly detail the advantages of both alternatives to assist business owners and managers thinking about either of these choices.

What are the major distinctions between managed and serviced offices?

A serviced office is a place of business that may be rented on an as-needed, short-term basis and includes amenities like WiFi, receptionists, and administrative support. Clients often sign agreements for terms ranging from one to twelve months and pay an all-in price per desk each month. The office space is furnished and created to the provider’s specifications, making it easy for a client to show in and get to work.

A managed office and a serviced office are comparable because they offer adaptable space run by a different companies. The main distinction with this kind of office is that the renter is expected to contribute more because the place is a managed office or a blank canvas that needs to be filled. A tenant must specify their exact needs, including the number of desks, chairs, meeting spaces, and floor finishes, for the provider to supply what is required. It turns a managed office into a workspace specifically designed for them. Usually, a renter must sign a lease for a period of 12 months, but they only pay for the area they occupy, not for each workstation.

The benefits of using serviced offices

Serviced offices are well suited for startups and small enterprises that value flexibility and want to reduce upfront capital expenditures like furniture and fixtures. The contract period for a serviced office can range from one month or how many years you desire. To know if this is the one for you, here are the benefits of using serviced offices:

• Ease of setup – Serviced offices offer fully equipped workspaces ready for you to access, plug in your IT equipment, and begin working.
• More flexible – New businesses with fluctuating growth projections might be much more flexible with shorter contracts.
• All-inclusive – Modern service providers offer a variety of appealing amenities, including meeting rooms, breakout spaces, reception areas, WiFi, and social areas.
• Collaborative workspaces – Small organizations can benefit from enhanced networking opportunities and collaborative working conditions in shared serviced office spaces.
• Low initial outlay – Serviced solutions spare tenants the large capital outlay connected with traditional leases.

The benefits of managed offices

Scaleup enterprises and SMEs may find managed offices a better alternative because the usually managed office contract lasts between one and three years. For tenants to brand and personalize the workspace is one of the clear benefits of a managed contract. To discover whether this setup is for you, here are the benefits of managed offices:

• Personalized setup – Compared to serviced offices, managed offices can be completely branded and customized in interior decor, furniture, and wall art.
• Built-to-order and spacious – A managed office is rented on a per-square-foot basis rather than the number of desks it contains. It is built to order and spacious. As a result, you pay based on square footage rather than the number of desks you take.
• Adjustable transactions and low setup costs – Finding a conventional lease, whether it be for a short or long period of time, can be very cash flow strenuous, given that some landlords require a deposit equal to one year’s worth of rent in advance, aside from the capital outlay needed to fit out an office. An arrangement for a managed office is significantly more adaptable because the provider covers the fit, and deposits range from two to three months’ worth of rent.
• Client-friendly – It’s arguable that a managed space is better for fulfilling the demands of clients. It is because the unit’s breakout spaces and conference rooms are exclusive use rather than being shared with other companies, as is the case with a serviced style arrangement.
• No hidden fees – In traditional leases, the renter is responsible for legal fees, real estate agent’s fees, and business rates. These costs do not apply in this kind of agreement because the managed space is directly under the host’s control.

Which kind of arrangement is best for your company?

Hopefully, we’ve made clear the misconceptions about the distinctions between a managed office space and a serviced office space. A serviced contract is most likely appropriate for new companies with strong growth prospects, as the flexibility makes scaling up easier. A more established small to medium size firm looking for a long‐term contract that can be fully customized and branded to satisfy rigorous standards is most likely to benefit from a managed office.