There is a growing demand for more flexible office spaces. The demand first began during the many lockdowns we experienced in 2020 and 2021. Even with the lockdowns now over,  more and more businesses are wanting short-term office spaces that enable them to take a more flexible approach when it comes to renting an office space. Also, many more people are starting their own businesses and serviced offices are perfect for start-ups as they work on a short-term, rolling renewal style rental agreement. This does lead people to the debate of serviced offices vs managed offices and which is better.

Within this article, we are going to discuss the serviced offices vs managed offices debate to help you decide which would be best for your business. 

What is a Serviced Office?

A serviced office is a fully furnished office space that’s ready for use with facilities provided and an operator to manage the property. Unlike traditional offices, serviced offices charge all-inclusive monthly bills covering everything from the space itself to Wi-Fi, reception staff, and cleaning. Also, unlike traditional offices, you will not have to sign a long three to five year lease. You will be able to have a monthly rolling contract. 

There will be a range of services and facilities available with the serviced offices such as meeting room, furniture, computers, printers and WI-FI. 

All maintenance and repairs will be taken care of by the owner or landlord so your business costs will be low within a serviced office. 

Benefits of Choosing a Serviced Office

There are many benefits to a serviced office. Firstly, they offer a great deal of flexibility when it comes to the lease. This allows businesses to grow and evolve without having to worry about outgrowing their office space. With a serviced office you can upgrade, downgrade or move completely with very little notice. 

Secondly, they come fully furnished and equipped with all the necessary equipment and amenities such as WI-FI, electricity, heating etc. And this will all be ready to go the day after you sign your lease so you will be able to quickly get to work. 

Potential Downsides of Serviced Offices

Along with the benefits, there are some potential downsides to serviced offices. Some can be more expensive to rent than the monthly cost of a traditional office. You must take into account that within the price of a serviced office, you are getting the space itself, office furniture and equipment, all the utilities and access to amenities and facilities, such as kitchens and meeting rooms, plus cleaning and maintenance. You must way up the price and remember that, even though rent may be cheaper in a traditional office space, you would have to pay for all these types of things separately. 

Another downside for some businesses is that they are not able to customise and add their own business brand to the serviced office space. This is true of some serviced offices but within others, such as the ones available at Cinch Self Storage, you are free to customise your office space to meet your business branding requirements. 

What is a Managed Office?

A managed office is similar to a serviced office, in that both provide flexible space that is operated by a separate party. The key difference is that a managed office requires greater input from the tenant, with the space itself a blank canvas that needs to be filled. A tenant must define their exact requirements, from the number of desks, chairs and meeting rooms etc., so that the provider can deliver exactly what is needed, effectively making a managed office a custom-built workspace. 

You will also normally be required to to term of 12 months but rather than pay per desk, a tenant pays for the amount of space they occupy.

Advantages of Managed Offices

With managed offices, you will be in complete control of what the space looks like as it will be a completely blank canvas before you move in. 

If you are a more established business with a larger team, they can also prove to be much more cost-effective and the longer lease will add a form of stability. 

Also, it will only be you and your team within the space. You will not have to share any spaces such as the meeting rooms or break rooms. This will add an extra layer of safety and also make the space look more professional to any visiting clients.

Drawbacks of Managed Offices

As with anything, alongside the advantages, there are some possible drawbacks to using a managed office space. 

Firstly, you will have to wait longer to move in as your managed office will need to get set up. 

Then there is the fact that you will have additional responsibilities and costs to pay such as maintenance and cleaning. You will have to think about these extra costs when thinking about serviced offices vs managed offices. 

Comparing Costs: Serviced Offices vs Managed Offices

When it comes to comparing the costs of serviced offices vs managed offices, you will first need to think about where you want your office to be located. No matter the type of office, a space in London will be more expensive than a space in Manchester. 

Serviced offices do come with a lot more including, in particular, you will be responsible for the cost of maintenance or repairs but there is less privacy as serviced offices have shared areas. 

The decision will really come down to where your business is currently at. Serviced offices are excellent for start-ups as they are extremely flexible and cost-effective. Managed offices are good for more established businesses as they have less flexibility but allow for greater control over layout. Where your business is at and what is important to you will really factor into who wins the serviced offices vs managed offices debate. 

Which Is Right for Your Business?

As we have already mentioned, which office is best for you when it comes to serviced offices vs managed offices, will depend entirely on your business.

If you are just starting out, the chances are that your business is going to grow and evolve quickly and even a twelve month lease, which you get with most managed offices, would hinder this growth. A serviced office will allow you to evolve as you can upgrade or downgrade offices quickly. Also, a serviced office will take away some of the pressure as you only need to pay monthly in a rolling contract. This will allow start-ups to use office spaces without having to worry about long-term leases. 

Managed offices are better for more established businesses as they allow you to really customise the space to meet your business needs and the space will only be used by you and your team. This will add a layer of security and allow your business to appear established and professional. 

Serviced Offices Vs Managed Offices: Making an Informed Decision

Serviced offices vs managed offices can be a hard decision to make because, in a lot of ways, they are quite similar. They both provide flexible space that is operated by a separate party. The key difference is that a managed office requires greater input from the tenant, with the space itself a blank canvas that needs to be filled. A tenant must define their exact requirements, from the number of desks, chairs and meeting rooms to floor finishes, so that the provider can deliver exactly what is needed, effectively making a managed office a custom-built workspace. 

It is important that you assess your individual business needs so you can decide what is the best choice for you and your business. 

If you would like to know more about our serviced offices available to rent within some of our stores, please click here for more information.