Serviced Office vs Managed Office: What’s the Difference?

Choosing the right office solution is a crucial decision for businesses of all sizes. The rise of hybrid working and working from home have made options like serviced offices and managed offices increasingly popular. But what sets them apart?

In this guide, we’ll cover everything you need to know about serviced offices vs managing offices, diving into the features, benefits, and potential drawbacks of each.

If you want to learn more about how to choose the perfect office space for your business, don’t hesitate to contact us - our dedicated team of experts is always on hand to help find the right office solution for you.

What are Serviced Offices?

Serviced offices are fully furnished, ready-to-use workspaces managed by a third-party provider. These spaces are designed for flexibility, allowing businesses to move in quickly and scale up or down as needed.

Serviced offices are often located in prime business districts and come with shared amenities like meeting rooms, kitchens, and reception areas.

The flexibility and ease of setup make them the perfect choice for startups and freelancers, as well as for larger companies looking to establish a temporary or satellite office.

What’s included?

• Furniture and equipment
• Utilities such as electricity, water, heating, and internet
• A reception space and front-desk team to greet visitors and handle deliveries
• Shared spaces such as meeting rooms, lounges, and break areas
• Cleaning, maintenance, and security services

These all-in-one packages offer significant opportunities to simplify the operational side of running an office - which gives you more time and resources to spend on growing your business.

What are Managed Offices?

Managed offices are custom-designed spaces leased by a business but managed by an external provider.

Unlike serviced offices, managed offices are tailored to the specific needs of your company, offering more branding and design flexibility while still providing the benefits that come with third-party facility management.

Managed offices are ideal for companies that need a larger space or one that better reflects their unique culture, but that do not want the operational burden of managing a traditional leased office.

What’s included?

• Custom layout, design, and decor tailored to the needs of your business
• External management of maintenance, security, and cleaning
• Longer-term agreements than serviced offices but with more flexibility than traditional leases
• Utilities and IT infrastructure may also be included

There is some overlap between serviced offices and managed offices, and each type of office is an example of the more flexible office spaces that are becoming increasingly popular among small and growing businesses. However, the small differences are crucial, and managed offices can be an excellent option for a medium-sized or growing business.

Pros and Cons of Serviced Offices

Pros:

• Flexibility: Short-term contracts and scalability make services offices a great option for businesses in transition or growth.
• Speed of setup: With no need to spend time on design and decor, serviced offices are able to welcome new businesses quickly, with minimal downtime.
• All-inclusive: Wrapping all costs into one monthly fee simplifies budgeting.
• Network benefits: Shared workspaces often attract like-minded individuals and companies, providing excellent opportunities for networking.

Cons:

• Less customization: Limited options for asserting your identity beyond basic branding.
• Shared spaces: Privacy concerns in some industries may not be fully addressed.
• Cost efficiency: Per-desk pricing can be more expensive than other solutions.

Pros and Cons of Managed Offices

Pros:

• Customization: Tailor your office space to your specific needs and brand.
• Dedicated use: Enjoy a private space without sharing with other businesses or workers.
• Management: Day-to-day operations like cleaning and maintenance are taken care of by professionals.
• Cost efficiency: More economical for mid-to-large-sized teams.

Cons:

• Longer leases: Longer-term commitment compared to serviced offices.
• Setup time: Customizing your space can mean a longer lead time before moving in.
• Less flexibility: Limited options for scaling up or down quickly.

How do Traditional Offices differ?

Traditional offices are typically leased directly from landlords, requiring businesses to handle their own setup, maintenance, and ongoing management.

• Long lease commitments, often around 5-10 years
• High upfront costs for design, furniture, and infrastructure
• In-house management of utilities, cleaning, and repairs

While traditional offices offer complete control over the space, they also lack the convenience, flexibility, and support that come with serviced or managed office solutions.

What’s the Best Type of Office for My Business?

Which office solution is best will depend heavily on the nature of your business - its size, goals, and operational needs.

Choose a serviced office if:

• You’re a small business, startup, or freelancer prizing flexibility and minimal setup time.
• Your team is growing or frequently changes size, and you want the ability to scale quickly.
• You value an all-inclusive package with shared amenities.

Choose a managed office if:

• You have a medium to large team and need a private, tailored space.
• You want to maintain your brand identity throughout your office environment.
• You prefer not to take on the administrative burdens of maintenance and facilities management.

Consider a traditional office if:

• You’re an established business seeking full control over your space.
• You can commit to a long lease and manage operational aspects in-house.

Find the Best Serviced and Managed Offices with the Help of Flexioffices

We hope you found this guide to serviced offices vs managed offices insightful. There’s a wide world of London office space to navigate, and understanding the pros and cons of the different types of office solutions is crucial to enable you to make the right decision for your business.

If you’d like to learn more about choosing the perfect office space, we at Flexioffices are happy to help - with over 800 managed offices and over 5,000 serviced offices to choose from, we have something to suit all needs.